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Australia and New Zealand Hotel Market Overview

05/04/2019

With annual visitation growing in 2018 for both Australia and New Zealand, a trend driven in part by the relatively weak Australian dollar, the tourism accommodation industry remains in good health across both countries. However, with funding becoming ever more expensive, is there a ceiling to future opportunity?

In our latest Australia and New Zealand Hotel Market Overview report, we have assessed the recent performance and outlook for eleven key cities including:

  • Sydney
  • Melbourne
  • Brisbane
  • Perth
  • Adelaide
  • Canberra
  • Darwin
  • Gold Coast
  • Hobart
  • Auckland; and
  • Queenstown

For each respective market we’ve analysed year-on-year performance, detailed key hotel openings during 2018, included a supply pipeline snapshot of what is under construction, approved and considered likely to proceed, detailed notable transactions that have occurred in 2018, as well as provide our forecast for future growth.

The Headlines

Continued development in Australia’s major hotel markets meant that key cities demonstrated a disparity in performance through 2018 as demand was outstripped by new supply.

Major markets such as Melbourne, Sydney, Perth and Brisbane have shown stabilisation or decline in RevPAR whilst markets such as the Gold Coast, Canberra and Hobart have shown strong RevPAR growth year-on-year.

In New Zealand, RevPAR in Auckland was softer year-on-year without the benefit of a strong calendar events as was apparent in 2017. However, there is opportunity on the horizon as infrastructure projects such as the new Convention Centre are due to be completed by late 2019.

With the majority of key markets experiencing an increase in supply projects, coupled with tighter ‘macroprudential measures’ evident such as a reduction in Loan to Value Ratios, it is anticipated that fewer proposed hotel development projects will take place going forward.

Your Essential Sector Guide

The Australia and New Zealand Hotel Market Overview seeks to provide investors, owners, and various other stakeholders in the industry with an insight into current hotel market conditions and fundamentals across the major cities nationally and in selected cities of New Zealand.

Through this report you will benefit from unprecedented insight into recent performance trends across key cities in Australia and New Zealand. You’ll also benefit from a snapshot of the current supply and demand drivers, recent hotel transactions across key cities, as well as a succinct outlook into current hotel trends.

For further information on the dynamics of the Australia and New Zealand hotel market, as well as Cushman & Wakefield’s expertise in the sector, please do not hesitate to contact either Alistair Bell or Monika Mattczak. For further cross-sector insights from our Australia Valuations team visit our dedicated page.

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