FLUSH from the record occupancies at last weekend’s grand finals in Sydney and Melbourne, hotel investors are tipping an influx of buyers for the improving sector.
Operator/owners Accor and Mantra, among others, recorded full hotels over the three-day football festival.
This was a fillip before the summer holidays for a sector that has felt the pressure of the reluctant traveller.
Quest Serviced Apartments, which will open a site at Sydney Olympic Park on November 15, was also busy in the past two weeks, which included school holidays.
Data revealing better revenue per room has made hotels even more attractive, and more than 90 per cent of Australia’s major hotel properties sold since January have been to Asian investors. The most recent was the $68 million sale of the Palazzo Versace hotel on the Gold Coast to two Chinese investors.
The Singaporean owners of the Four Points by Sheraton at Darling Harbour, M&L Hospitality, are undertaking a $150 million-plus upgrade of the property.
The chief executive for Australasia at Jones Lang LaSalle Hotels, Craig Collins, said hotel market transactions were up more than 130 per cent for the year to date, with a total volume of $1.55 billion.
”With a number of hotel transactions currently in due diligence and due to exchange over the next couple of months, we have every chance of exceeding the previous record achieved in 2007 of $1.82 billion,” Mr Collins said.
These will include the $550 million Thakral portfolio that Brookfield is acquiring from its takeover of Thakral Holdings. These assets include the Novotel at Brighton-le-Sands.
“This record year-to-date September total volume has been powered by a few record transactions that are expected to act as a catalyst for more major sales over the next 12 months, as Asian and Middle Eastern investors look to buy further into the Australian growth story,” Mr Collins said.
He said investor interest in Australian hotels had been largely driven by strong trading fundamentals and an excellent growth outlook.
This story Administrator ready to work first appeared on Nanjing Night Net.