Hotel sector is in for an investment boom
Raddison Blu Plaza Hotel Sydney
Investors are pouring into the hotel industry.
Developers are moving in and expanding their offerings on the back of increased tourism from Asia and the higher propensity for "staycations" among domestic travellers. At same time, there’s rising demand from business and conference attendees.
According to CBRE research, we can expect to see more growth and improvements in the hotel sector, despite the strengthening seen until recently in the Australian dollar.
CBRE's first quarter Australia Hotels MarketView report says domestic travel remains strong, It maintains that the higher dollar will not discourage overseas visitors travelling to Australia.
CBRE Hotels' research manager Benjamin Martin-Henry told Fairfax Media that Cairns and the Gold Coast would be the big drawcards for the Australian hotel market, recording double-digit increases in revenue per average room rate (RevPAR) for the year to the end of March.
The Carlson Rezidor Hotel Group is looking at strong growth. It plans to build its portfolio in Australasia to 15-20 hotels in the mid-term.
The group last year opened10 hotels and had 23 signings in the Asia Pacific. It now says it’s on track to achieving its target of adding 100 operating hotels to its Asia-Pacific portfolio by 2020.
Barry Fleischmann, the recently-appointed director of development for Australia, New Zealand and the Pacific Islands for the Carlson Rezidor Hotel Group told Fairfax Media that the business was targeting millennials with the Radisson RED brand in metropolitan cities. The Radisson RED delivers a hotel experience enhanced by art, fashion and music. It also offers owners a lower per-key cost than traditional upscale hotels
The group is also planning to roll out upscale resort opportunities along the Gold Coast for Radisson Blu. It’s looking at the Park Inn by Radisson brand to capture the midscale segment.
The group is now talking to developers about rolling out Radisson RED in top-tier cities such as Auckland, Brisbane, Melbourne, Perth and Sydney.
by: Australian Hospitality
