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CAPITAL MARKETS INVESTMENT REVIEW

2017/18 | ANZ

HOTEL INVESTMENT REVIEW | ANZ – 2017/18 A CAPITAL MARKETS PUBLICATION

Page 1Introduction Key Findings FY2017/18 in Review Markets Overview NZ Investment Market Lifestyle Hotels – the Next Big Thing Investment Outlook & Forecast Indicators Detailed Transaction List Team /Authors

Introduction

Australian hotel transaction activity slowed in FYE2018 with volumes easing to $1.338 billion, after a record three years, with a reduction in big-ticket sales. Deal flow increased however with 35 transactions (above $10 million) concluding throughout the year. This compares to 30 transactions in FYE2017.

Fewer big-ticket sales also saw a shift in the capital base with locally domiciled funds stepping to the fore. Australian investors accounted for 63.7 per cent of asset trades in FYE2018, considerably higher than the 16.5 per cent recorded in FYE2017. Investors from Mainland China fell behind the rest of Asia as one of the

more dominant sources of inbound capital, accounting for only 1 per cent of transactions over the year, as capital restrictions continued to bite. Continuing the trend of FYE2017, Middle Eastern investors remained active, as well as groups from Germany, Hong Kong, Singapore and the United States.

Queensland was one of the more active hotel investment markets as investors made counter cyclical plays, ahead of improving fundamentals in Brisbane and as the key leisure markets continued to boom (aided by the Gold Coast playing host to the 2018 Commonwealth Games). Whilst the Sunshine state topped the number of deals with nine assets transacting over the year, volumes were higher in NSW and VIC with the totals for both boosted by a few CBD sales.

For the first time for more than a decade, the number of rooms opening throughout the year surpassed the number traded with investors focussed on the development of new rooms. In FYE2018 almost 6,500 new rooms came on line in the ten major markets with an estimated value of more than $2.0 billion. This has also resulted in more hotel development site sales with projects offered in Sydney, Melbourne, Canberra and the Gold Coast over the year. Offshore groups continue to take a lead role in the development of new accommodation rooms, accounting for 40 per cent of rooms opening in FYE2018 and almost two thirds of rooms currently in the pipeline.

We trust you find the Capital Markets Hotel Investment Review an insightful read and, as always, we welcome your feedback.

Gus Moors, Head of HotelsKaren Wales, Director, Transaction Service, Hotels

FY2018 TRANSACTION VALUES

$1.34bnAustralian hotel transaction activity slowed in FYE2018

Deal flow increased

35Transactions

Australian investors accounted for

63.7%of asset trades in FYE2018



Key Findings

Australian Hotel Transaction volume ($10 million plus) – FYE2018

4,500 (Millions $AUD)

4,000

3,000

3,500

2,000

2,500

1,000

500

1,500

0

NSW VIC SA QLD WA ACT TAS NT PORTFOLIO

Australian Hotel Transaction by StateFYE2009 to FYE2018 (A$5 million plus)

FYE11 FYE18FYE13FYE09 FYE16FYE15FYE12FYE10 FYE17FYE14

Source: Colliers International

OtherOwner OperatorPrivate

Investment FundInstitution

DeveloperCorporate

Unknown


Australian Hotel Transactionsby Purchaser Type – FYE2018

35Transactions

$1.34bnDown from FYE2017 transactions

Down on FYE2017

47 %

55%

Average price per key

$326,663down 36% on FYE2017

Average ticket-size

$38.2m

KINGFISHER BAY RESORT & VILLAGE

QLD

Proudly sold by Colliers International



Key Findings (cont.)


3,000 (Millions $AUD)0 500 1,000 1,500 2,5002,000

FYE17

FYE18

Australia China Hong Kong Japan Middle East South East Asia GlobalUnited States Other

Australian Hotel Transactionsby Source of Capital (A$10 million plus)

14,0000 2,000

Approved

Proposed

UnderConstruction

CompleteFYE18

Domestic O�shore

Major Markets Accommodation Pipeline by Source of Capital – FYE18

12,00010,0008,0006,0004,000

Number of rooms

VIC

$343m

NSW

$350m

QLD

$347m

MOST ACTIVE INVESTMENT MARKETS

7-23 SPENCER STREET, MELBOURNE

VIC

Colliers International is proudly undertaking an operator search on

behalf of CGA



Trading Performance

Financial Year 2017/18 in Review

Australia’s accommodation pipeline kicked up a gear in FYE2018 with the opening of almost 5,000 new rooms across the ten major markets and a further 1,500 rooms in Sydney and Melbourne’s sub-markets. This is the highest number of new rooms which has opened in any year since 2000 and represents a marked shift in the trading backdrop.

Brisbane and Perth recorded the lion’s share of activity, accounting for almost half of new rooms with notable openings including the Pullman and Ibis at Brisbane Airport, W Brisbane, Westin Perth and InterContinental Perth. More broadly, we note that hotel development is focussed on the luxury and upper upscale segments, reflecting the high proportion of mixed-use developments and prevalence of Asian capital in the accommodation development market. Australia is also playing catch-up with many global luxury brands not currently represented in the key Australian accommodation markets.

Colliers estimates that there is a weighted accommodation pipeline of around 27,000 rooms with almost half of these new rooms currently under construction and 7,000 rooms proposed, thought likely to commence construction in the next six months or are government mandated projects.

All markets, except for Darwin and the Gold Coast, are seeing an accelerated pipeline with openings expected to peak in 2019 and 2020. Development activity is greatest in Hobart, Melbourne, Adelaide and Perth with increases set to expand the existing supply base by more than one third. The likelihood that projects in planning will proceed has moderated with some projects being offered for sale, put on hold or shelved altogether, particularly as development debt has become constrained.

Notwithstanding, hotel construction activity provides a good barometer for where demand is growing (perhaps with the exception of Perth). With a strong economic backdrop and significant investments in tourism and transport infrastructure, demand is expected to absorb the additional supply over the medium term, particularly as Australia’s appeal as a premium destination for visitors continues to grow.

Inbound arrivals to Australia topped 9 million for the first time ever in FYE2018 with the number of visitors surging 6.2 per cent over the previous year (to May). Whilst leisure travel (holiday and VFR) accounted for three quarters of total inbound visitation, the business and convention segments recorded the strongest growth up 12.2 per cent and 32.6 per cent respectively throughout the year. Growth in convention travel is being supported by investments in infrastructure with new or expanded facilities available in Sydney, Adelaide, Melbourne and Perth. The recent launch of a new $12 million fund by Tourism Australia to support the Australian business events industry is also expected to improve Australia’s competitiveness to secure large global events.

Budget

Midscale

Upscale

Upper Upscale

Luxury


45.0%

Darwin

Gold Coast

Cairns

Canberra

Sydney City

Brisbane

Perth

Adelaide

Melbourne City

Hobart

Completed FYE18 Under construction Proposed Mooted – Approved

Accommodation Development PipelinePercentage Increase on Base Stock

40.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%-5.0%


Major Markets Accommodation Pipeline

by Star Grading

Source: ABS, Colliers InternationalNote: Please refer to page 26

almost

5,000new roomsopened across ten major markets

9 minbound arrivals Up from FYE2017

6.2%

800 Arrivals thousands

400

500

600

700

0

100

200

300

Jun

00Ju

n 01

Jun

02Ju

n 03

Jun

04Ju

n 05

Jun

06Ju

n 07

Jun

08

Jun

12

Jun

09Ju

n 10

Jun

11

Jun

16

Jun

13Ju

n 14

Jun

15

Jun

17

Total arrivalsLeisure

Inbound Arrivals to Australia 12-month Rolling Average FYE2000 to FYE2018 (to May)



Chinese visitors to Australia outnumbered New Zealanders for the first time in FYE2018, with more than 1.42 million visitors from China over the year to April 2018, up 13.7 per cent on the previous year. The number of visitor nights sourced from China spent in hotels has more than doubled over the past ten years. The ability for hoteliers to capture growing demand from China will in part be dependent on the availability of mobile-payment systems (e.g. Alipay) and Mandarin speaking staff.

Against this backdrop, Sydney and Melbourne retained their mantle as the two strongest hotel markets in Australia with both ranked highest for occupancy and room rates in FYE2018. Key leisure markets – Cairns and Gold Coast – also ranked highly against the backdrop of growing inbound leisure arrivals. Growth however was strongest in the smaller state capitals of Darwin and Adelaide. Perth was the only Australian hotel market to record a marked decline in all three key performance indicators.

SYDNEY CITY 87.8% SYDNEY $264 DARWIN 8.6%

MELBOURNE CITY 85.7% MELBOURNE $206 ADELAIDE 6.6%

CAIRNS 84.6% GOLD COAST $196 CAIRNS 6.4%

Trading Performance

Financial Year 2017/18 in Review (cont.)

Top Inbound Source Marketsby Visitors – FYE2018 (to May)

UNITED STATES

$0.44m

JAPAN

$1.42m

CHINA

UNITED KINGDOM

$1.37m

NEW ZEALAND

$0.74m

$0.79mSource: ABS, Colliers International

Top Performing Australian Hotel Markets FYE2018

Source: STR Global, Colliers InternationalOcc = Occupancy ARR = Average Room Rate RevPAR = Revenue Per Available Room

HIGHEST OCCUPANCY HIGHEST ARR RevPAR GROWTH



Key Accommodation Markets Overview

Sydney

STRONG UPWARD TRAJECTORY

The strong performance of Sydney’s hotel sector continued through FYE2018 with RevPAR increasing 3.2 per cent over the year, supported by a strong economic backdrop and significant investments in infrastructure. There is an unprecedented number of funds being directed towards delivering major transport and infrastructure projects. The opening of the new International Convention Centre in late 2016 has also provided an ongoing boost to the hotel sector.

The opening of around 900 rooms in the CBD in the FYE2018 and a further 1,200 rooms in the metropolitan sub-markets was not without impact with occupancy levels moderating, proving that the city hotel market is not immune to supply impacts. Whilst moderating, occupancy levels still averaged 88 per cent over the year and remain the highest in the country. This indicates that many hotels are operating close to full throughout the week and on Saturdays.

ARR growth maintained its strong upward trajectory, delivering strong returns to owners, and constraining investment activity as a result with owners reluctant to sell whilst income returns are increasing at such a strong rate. Only two CBD hotels transacted in Sydney in FYE2018 with the sale of the Four Points by Sheraton Hotel, which is currently under construction and the Breakfree on Clarence. The Mercure Sydney International Airport also sold for $76.4 million. Two out of the three were acquired by domestic investors which represents a marked change to prior years.

There are new rooms coming into the Sydney city hotel market but the pace of openings is considerably slower than in other major state capitals and projects in the pipeline now face a changed development environment which may see fewer progress than previously anticipated. Many approved hotel projects are being offered for sale as developers look to exit. Of those approved hotel rooms, more than two thirds have been or are being marketed for sale. Whilst some projects may proceed under a new owner, the timing will be delayed pending the outcome of a successful sale and subject to any changes to the proposed hotel scheme. The strong performance of the commercial office segment has also resulted in some hotel projects being put on hold indefinitely.

$270 Average Daily Rate

250

260

240

230

220

210

200

180

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

Source: STR Global, Colliers International

190

Occupancy 95%

9193

89

838587

8179

7577

Occupancy (%)ADR ($)

Sydney – 12 month rolling occupancy and ADR

approximately

900 new rooms

CBD

approximately

1,200 new rooms

METRO/SUB MARKETS

3.2%Increase of RevPAR

supported by a strong economic backdrop and significant investments in infrastructure

233 CASTLEREAGH STREET, SYDNEY

NSW

Colliers International is proudly undertaking an

operator search on behalf of Hans Group.




Melbourne

WEAKENING EVIDENT

Melbourne was one of the more active hotel investment markets in FYE2018 with four major hotel transactions including the Mercure Melbourne Treasury Gardens ($70 million), Adina Melbourne ($43 million), the Royce Hotel ($55 million) and the Sheraton Melbourne ($126.9 million). Only one of these hotels was bought by an offshore group with Qatar Air’s purchase of the Sheraton.

Melbourne’s long-term fundamentals remain strong as the city has shown strong appeal with growth from inbound segments with a large Asian resident population, dynamic dining scene and easy access to many of the desired attractions and activities across the state. International retailers have often targeted Melbourne as a first port of call as a result. Growth from China is expected to continue following the open skies agreement in late 2016 and given the lack of an airport curfew, which presents as a significant advantage over Sydney. International passenger movements through Melbourne Airport have increased by 54 percent over the past five years. This compares to just 30 per cent in Sydney.

Notwithstanding, the performance of Melbourne’s accommodation market has been lacklustre over the past couple of years with RevPAR declining 1.2 per cent in FYE2018. Only one hotel opened in Melbourne city (347 rooms) during the year and the soft demand backdrop remains a concern, particularly during major events.

The supply outlook is also posing headwinds with over 3,000 rooms currently under construction and a further 7,000 rooms in planning. A large portion of these new rooms are luxury standard and will see the entry of new brands to the Australian hotel market, including Ritz Carlton, Mandarin Oriental, Le Meridien and W for example. In a marked contrast to previous years, development activity in the metropolitan sub-markets has also increased with a further 3,000 rooms under construction or proposed.


200

210

190

180

170


Occupancy 90%

85

80

75


Melbourne – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

MAJOR TRANSACTIONS

4

50%International passenger movements through Melbourne Airport have increased by 54 percent over the past five years.

SERVICED APARTMENTS MOONEE PONDS,VIC

Proudly marketed by Colliers International




Brisbane

TRADING APPROACHING STABILISATION

Brisbane was one of the more active hotel transaction markets in FYE2018 with counter-cyclical buyers strategically acquiring assets for repositioning across the CBD as trading performance nears stabilisation. RevPAR increased 1.7 per cent over the year to average $116. Notable sales included the Mercure & Ibis Brisbane, the Emporium Brisbane, Metro Hotel Tower Mill and the Watermark Hotel Brisbane with offshore investors dominating the landscape.

Brisbane is the most advanced in the development cycle with half of rooms in the pipeline having now opened. Although there are some signs that the trading market has bottomed, there are still 1,000 rooms under construction slated to open over the coming year which may see trading decline again albeit only marginally.

The medium-term outlook looks strong with more than $30 billion of infrastructure investments planned. The new Brisbane International Cruise Terminal and Queens Wharf Development are underway which will boost the appeal of Brisbane as a destination for both domestic and international visitors. The airport expansion, slated for completion in 2020, will double the number of passengers that can be accommodated by 2033. More recent mooted proposals include the $2 billion Brisbane Live entertainment precinct, redevelopment of the Eagle Street Pier and the redevelopment of the Roma Street Transit Centre which will result in the Hotel Jen being removed from the market.


200

210

190

170

180

150


160

Occupancy 90%

85

80

75

70


Brisbane – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

1.7%Increase of RevPAR

1,000

$116Average

roomsunder construction

NOVOTEL, SOUTHBANKQLD

THE WESTIN BRISBANE

Opened May 2018, 238 rooms – Asset Management

Opening Nov-18, 286 rooms




Gold Coast

INSPIRED BY THE COMMONWEALTH GAMES The Gold Coast’s accommodation market has been on a strong growth trajectory over the past seven years and reached a pinnacle in April 2018 when the city played host to 2018 Commonwealth Games. With its favourable subtropical climate, surfing beaches, theme parks, nightlife, and rainforest hinterland, the Gold Coast hotel and tourism market has recorded strong growth against a backdrop of improving tourism demand. This has resulted in consistent ARR growth with room rates averaging $195 in FYE2018 with the city ranked third behind Sydney and Melbourne.

The Gold Coast has also experienced a major boost in infrastructure and public transport in the lead up to the Commonwealth Games, with an estimated $2.5 billion spent on upgrading infrastructure. Further developments are also underway with the construction of a new amphitheatre and Art Gallery as part of the 17-hectare Cultural Precinct.

This strong performance is attracting more investors to consider the market but opportunities to acquire hotels remain limited given the high proportion of strata-titled stock. In FYE2018 there was one transaction with SB&G acquiring the Watermark Hotel which was brokered by Colliers International. The hotel will be rebranded to Voco which is IHG’s new upscale lifestyle brand. New development also remains limited with many mooted projects not proceeding, outside of those at the casino. As a result, we expect the market to continue perform well in the coming years.


170

190

180

160

150

140

130


Occupancy 80%

74

72

70

78

76

68

66

64


Gold Coast – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

AVERAGE ROOM RATE

$195NATIONAL RANK

3rd

WATERMARK HOTEL, GOLD COAST

QLD

PriceConfidential

DateJune 2018

VendorHIS International

PurchaserSB&G Hotel Group

Proudly sold by Colliers International




Cairns

GOING FROM STRENGTH TO STRENGTH Cairns has been one of Australia’s strongest performing hotel markets over the past three years with near double digit RevPAR growth each year. RevPAR gains moderated slightly in FYE2018, increasing 6.4 per cent year-on-year.

Cairns is benefiting from increasing tourist numbers with the destination attracting renewed interest from domestic and international tourists alike. Inbound visitation has received a major boost from direct flights from mainland China, which has helped smooth traditional seasonality patterns throughout the year. Occupancy levels reached 84.6 per cent in FYE2018, which represents a very high level for a leisure market, and provided a good basis for hoteliers to yield. ARR increased 6.0 per cent over the year – one of the strongest rates of growth for any Australian hotel market.

Investment activity has remained limited, despite the strong fundamentals, with few quality assets offered for sale. Whilst a few hotels are under construction or planned, new hotel development remains generally held back by the lack of feasibility, particularly for large-scale projects. Investments in infrastructure such as the proposed Global Tourism Hub (GTH) are expected to give the local tourism industry a major boost in the coming years and are being complemented by wider government infrastructure spending including the adjoining Trinity Inlet upgrade and the Convention Centre expansion.


140

150

120

130

110

100


Occupancy 90%

85

80

65

70

75


Cairns – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17 6.4%Increase year on year

RevPAR

84.6%OCCUPANCY

RYDGES ESPLANADE RESORT, CAIRNS

QLD

Proudly marketed by Colliers International




Canberra

BROADENING BASE OF DEMANDCanberra’s overall tourism environment remains positive with RevPAR increasing 4.0 per cent in FY18, continuing the upward trend of the year prior. Canberra ranked fourth for ARR in FYE18 with room rates averaging $175 throughout the year.

While Canberra will always have a steady flow of corporate travellers, it is also emerging as a favourable destination for leisure travellers with its selection of museums, galleries, historic buildings and a burgeoning food, wine and arts scene. Performance over the coming year however remains subject to the timing of the Australian federal election.

The commencement of direct international flights by Qatar Airlines in 2018 and Singapore Airlines in 2016, has made it easier for tourists to visit Canberra and increased the opportunities for hoteliers to yield. The Government’s commitment to major infrastructure investments such as the ACT Light Rail project and City to Lake project are also very positive for the Canberra region.

The Canberra hotel market is also quite unique in that it has many local owner operator groups with the market tightly held. Local developers were behind the majority of site acquisitions in FYE2018 including Geocon’s acquisition of 70 Bunda Street in the city and West Block in Barton. Notwithstanding, there were three hotel transactions in FY18 including the sale of the Quality Hotel Woden ($16 million), as well as Ibis Styles Canberra ($27.5 million) and Aria Hotel (now Adina hotel) for $35 million. All three assets were acquired by domestic investors.


170

180

160

150

140


Occupancy 85%

75

80

70

65

60


Canberra – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

ARR NATIONAL RANK

4th

4.0%Increase on FY2017

RevPAR

LITTLE NATIONAL HOTEL, CANBERRAACT

120 rooms - Asset Management




Adelaide

REACHES NEW HEIGHTS The Adelaide market performed well in FYE2018 with RevPAR increasing 6.6 per cent to be at the highest level ever recorded. Increased flights from Asia, a vibrant CBD and a booming convention precinct are underpinning the strong hotel performance in the South Australian capital and attracting new entrants to the sector.

The Adelaide Convention Centre will complete a $400 million expansion in August 2018. The Centre opened in 1987 as the first purpose built convention centre in Australia. The Government is committed to growing convention business in Adelaide with a focus on bio-medical and space industry events. This follows infrastructure investments such as the AUD$3.6 billion

Adelaide BioMed City precinct, as well as major upgrades to the Adelaide Festival Centre and Adelaide Oval. Works are also now underway for the $330 million expansion of the Adelaide Casino into a world-class integrated entertainment destination, scheduled for completion by 2020.

Against this backdrop, investment activity has increased with a strong forward pipeline of rooms across the city and with two notable transactions occurring over the year. Transactions included the first large-scale investment by an offshore group in Adelaide’s CBD hotel market for almost a decade with the sale of the Mercure and Ibis Styles Grosvenor Hotel for $43 million and Corus Grosvenor Hotel to Singapore’s Chip Eng Seng.


160

150

140


Occupancy 82%

78

76

80

74

72

70


Adelaide – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

HIGHEST LEVEL EVER RECORDED

ADELAIDE CONVENTION CENTRE,

SA

Opened in August 2017 after expansion

works completed


RevPAR




Perth

DOWNWARD TREND YET TO REVERSEPerth hotel performance continues to wane with Perth the only hotel market in Australia to report a marked decline for all three key performance indicators in FYE2018. Whilst the rate of RevPAR decline has slowed over the past year, RevPAR in Perth hotels is now 33 per cent below the 2012-peak and with considerable new supply yet to impact.

Colliers estimates that 818 rooms opened across the city metropolitan in FYE2018 including the InterContinental Perth (238 rooms) and Westin Perth (362 rooms). We are aware of a further 2,258 rooms which are under construction due for completion over the next two years, putting additional downward pressure on occupancy levels and room rates.

Investments in infrastructure and nascent signs of an improving state economy are expected to benefit but are unlikely to be sufficient to offset the near-term downward trend. Over the medium term, the city is expected to see increased demand from more international flights such as Qantas’ non-stop connection to London, as well the proposed $2.5 billion expansion of the airport.

Notwithstanding, there were four hotel transactions in Perth in FYE2018 with counter-cyclical plays by offshore groups. With assets trading for the most part at a significant discount to replacement costs and a much lower level on a price per key basis than in home markets, offshore groups see value in Perth’s hotel market over the long term. The sale of the Holiday Inn City Centre was the largest hotel transaction in Perth with Legend Land purchasing the property for $63.88 million.


210

230

190

170

150


Occupancy 86%

80

8482

7876747270

6062646668


Perth – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

7.6%Decrease on FY2017

RevPAR approximately

818 new rooms

CITY/METRO 2,258roomsunder construction

INTERCONTINENTAL HOTEL, PERTH

WA

Opened in 2018 after extensive renovation

and repositioning




Darwin

REBOUNDS STRONGLY After a difficult few years, Darwin’s hotel market rebounded strongly in FYE2018 with the northernmost capital taking out the top spot for RevPAR growth, increasing 8.6 per cent over the previous year against a backdrop of improving demand.

The introduction of SilkAir and Donghai Airlines’ new direct flight routes between Singapore and Broome, and Shenzhen and Darwin is expected to boost visitor numbers into northern Australia further over the coming year. Notwithstanding, RevPAR remains well-short of the 2014-high with low levels of investment activity as a result.

The $200 million luxury hotel development by the Landbridge Group is progressing and pending relevant approvals, construction will commence later in 2018 with the hotel expected to open to guests in 2021. The Hotel’s Precinct Plan proposes connections within the Waterfront to enable the precinct to function as an integrated whole, anchored by the Darwin Convention Centre at one end and the Hotel and Cruise Ship Terminal at the other end.


170

160

180

190

150

140


Occupancy 90%

85

80

75

65

70

60


Darwin – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17


RevPAR

WESTIN HOTEL, DARWIN

NT

Recently approved Westin Hotel in Darwin

200 roomsLowest number of rooms in the pipeline




Hobart

WEIGHED DOWN BY NEW SUPPLYHobart hotel market’s bull run came to a halt in FYE2018 with the market proving it wasn’t bullet proof to increases in room supply. Two major hotels opened in the city over the year, introducing an additional 410 rooms including the luxury MACq1 and the midscale Ibis Styles. Occupancy levels reduced 5.2 per cent over the year to average 79.0 per cent. This is the first time that annual average occupancies have dipped below 80 per cent in Hobart for more than four years.

New stock is of a higher grade and quality than existing rooms which resulted in ARR increasing marginally over the year. At $170, room rates in Hobart ranked fifth in Australia for ARR in FYE2018 with room rates at a higher level than Brisbane and Perth. This is attracting more investors to the market.

Colliers estimates that a further 511 rooms are currently under construction scheduled to open over the next two years and an additional eight projects in planning. With such a strong forward pipeline of new rooms, investors remain cautious with respect to the acquisition of established stock, despite growing tourism demand. The introduction of international air services in the coming years has the potential to shift the demand floor once again which is likely to attract more investors in the medium term.


160

170

150

140

130


Occupancy 90%

80

7072747678

82848688


Hobart – 12 month rolling occupancy and ADR

Dec

09

Mar

10

Jun

10

Sep

10

Dec

09

Mar

11

Jun

11

Sep

11

Dec

11

Dec

12

Mar

12

Jun

12

Sep

12

Dec

13

Mar

13

Jun

13

Sep

13

Dec

14

Mar

14

Jun

14

Sep

14

Dec

15

Mar

15

Jun

15

Sep

15

Dec

16

Mar

16

Jun

16

Sep

16

Dec

17

Mar

18

Jun

18

Mar

17

Jun

17

Sep

17

approximately

410 new rooms

CBD

CRADLE MOUNTAIN, GATEWAY PRECINCT

TAS

Colliers International is proudly undertaking

an Expressions of Interest (EOI)

campaign on behalf of Tasmanian Government

5thhighest in Australia

ARR NATIONAL RANK

$170



Key Accommodation

Markets Overview

Source: STR / Colliers InternationalOcc= Occupancy, ARR- Average Room Rate, RevPAR – Revenue Per Available Room

Trading Performance FYE2018 compared with FYE2017

SYDNEY CITY

Occ: 87.8% down 1.2%

ARR: $264 up 4.5%

RevPAR: $232 up 3.2%

SYDNEY AIRPORT

Occ: 88.7% up 2.5%

ARR: $167 down 0.2%


CANBERRA

Occ: 78.0% up 1.8%

ARR: $175 up 2.2%


MELBOURNE CITY

Occ: 85.7% down 0.8%

ARR: $206 down 0.4%

RevPAR: $176 down 1.2%

BRISBANE

Occ: 73.7% up 1.2%

ARR: $157 up 0.5%


PERTH

Occ: 75.1% down 2.7%

ARR: $167 down 5.1%


CAIRNS

Occ: 84.6% up 0.4%

ARR: $153 up 6.0%


GOLD COAST

Occ: 72.7% up 0.5%

ARR: $196 up 6.5%


DARWIN

Occ: 74.8% up 7.6%

ARR: $145 up 1.0%


HOBART

Occ: 79.0% down 5.2%

ARR: $170 up 0.8%


ADELAIDE

Occ: 80.8% up 2.8%

ARR: $157 up 3.6%




New ZealandInvestment Market

The New Zealand hotel market continues to perform at historically high levels on the back of the 5th consecutive year of a tourism boom, which has seen a record 3.8 million international visitors visit the country in the past 12 months.

This has culminated in positive RevPAR growth in all the major hotel markets over the past 12 months. In particular Queenstown which has experienced 17.1 per cent RevPAR growth for the YE June 2018 followed by Rotorua at 6.4 per cent.

Demand continues to outstrip supply, with a fundamental shortage of hotel inventory in most key regions, with minimal new stock entering the market in recent times. In the past 12 months, we have seen just 693 rooms completed corresponding to a 3.1 per cent increase in total supply. This compares to international visitation numbers which grew at 4.0 per cent for the 12 months ending June 2018.

Whilst we continue to see an increasing number of projects being proposed, we have seen very few new projects commence construction in the past 12 months (circa 600 rooms) due to a range of factors including high land and construction costs, the recently imposed Auckland Council targeted rate on hotels, delays in consenting, and challenges with resources in the construction sector. This will result in limited new hotels being delivered until post 2021 (other than those already under construction).

The announcement that New Zealand’s largest construction company will no longer partake in any new vertical construction projects; is another critical factor in the challenge of delivering new hotel developments moving forward.



QUEENSTOWN RevPAR

ROTORUA RevPAR

CQ HOTELS,WELLINGTON

PriceConfidentialDateDecember 2017VendorPrivate DomesticPurchaserNaumi Hotel Group



In the meantime, the New Zealand International Convention Centre (NZICC) is on track to open in late 2019 with an anticipated 33,000 delegates annually together with Auckland hosting the APEC summit and the Americas Cup in 2021; which will create even more stress on existing hotel inventory until more stock is built.

On the transaction front, while there continues to be strong investment demand from both offshore and domestic investors, there have been very few sales of major hotels in the past 12 months, as existing hotel investors continue to enjoy buoyant trading conditions, and hold onto their assets. This being said, in the past six months there have been several major hotels in key markets offered to the market which are likely to be met with strong levels of interest.

We note below the recent sales completed in New Zealand over the past 12 months;

Best Western President Hotel: - The first FHGC hotel in the Auckland CBD in the past five years has attracted significant interest. The majority interests in this hotel were sold to New Zealand’s largest hotel owner, Pandey Hotel Corporation, for an undisclosed sum and set a record investment yield of under 7.0 per cent.

CQ Wellington - The 177 room CQ Hotels in Wellington has been conditionally sold to Singaporean Naumi Hotel Group for an undisclosed sum.

VR Queen Street – comprising an 80 room hotel which sold for $25.0 million in March 2018 at a passing yield of 3.82 per cent and a value per key of $312,500. The hotel is subject to a 30 year lease from 2014 with structured annual rental increases and a market review next occurring in 2022.

New ZealandInvestment Market (cont.)

AUCKLAND

ADR: $211.45 5.7% Change

Occ: 84.5% (2.9%) Change

RevPAR: $178.63 2.6% Change

WELLINGTON

ADR: $174.88 0.8% Change

Occ: 79.4% 0.0% Change

RevPAR: $138.90 0.9% Change CHRISTCHURCH

ADR: $160.50 0.3% Change


RevPAR: $123.96 2.8% ChangeQUEENSTOWN

ADR: $241.12 15.2% Change



ROTORUA

ADR: $134.38 5.9% Change



Key Performance IndicatorsFYE2018

ADR%

CHANGE OCC %

CHANGE REVPAR % CHANGE

$184.47 6.1% 80.7% 0.3% $149.76 6.4%

TOTAL NZ

BEST WESTERN PRESIDENT HOTEL,AUCKLAND

PriceConfidentialDateJune 2018VendorVariousPurchaserPandey Hotel Corporation



Lifestyle Hotels – the Next Big Thing

Driven by the chains, lifestyle hotels are the next generation of boutique hotels. They borrow the best elements of boutiques – small, intimate and modern – and throw in advantages only a chain can offer, like loyalty programs, distribution and economies of scale. As a result, lifestyle hotels are generally more affordable and accessible than boutique hotels but acknowledge that travellers are not singular in their wants and needs.

MORE AFFORDABLE AND ACCESSIBLE

ACKNOWLEDGE THAT TRAVELLERS ARE NOT

SINGULAR IN THEIR WANTS AND NEEDS

The growth of the boutique and lifestyle hotel sector has been one of the most watched global hotel trends in recent years. After decades of standardisation, there is growing attention to more differentiated product and boutique & lifestyle hotels have emerged as a considerable segment of the global hotel market.

M GALLERY BY CHADSTONE,

VIC

Colliers International proudly completed an

operator search on behalf of Vicinity.



Each brand has made a targeted shift to cater to guests’ specific lifestyles, from tech-savvy millennials to health-conscious athletes. Although the presentation and design differs amongst the lifestyle hotel brands, it is evident that the key elements are consistent. Key features that discern lifestyle hotels include:

▶ Focus on the experience rather than simply the product or service;

▶ Connect individuals and build relationships;

▶ Connect with their local environment to leverage what the precinct offers;

▶ Offer innovative facilities and new forms of entertainment;

▶ Enhance online presence and implement aggressive marketing strategies and;

▶ Emphasise life enrichment, creativity, and rejuvenation.

Australia has a small but growing boutique/lifestyle hotel segment with an established collection of well-known independent hotels primarily located in the major state capitals. More recently we have seen the entrance of Asian boutique and lifestyle operators including the Unlisted Collection (Old Clare), Como Hotels from Singapore and Ovolo Hotels from Hong Kong.

Lifestyle Hotels – the Next Big Thing (cont.)

Sydney City RevPAR ($) Lifestyle Hotels RevPAR ($)

Sydney Lifestyle & Boutique HotelsRevPAR (MAA) Comparison to Sydney City 2011 to 2017


$240 RevPAR

120

140

160

180

200

220

Dec

11

Feb

12

Apr

12

Jun

12

Aug

12

Oct

12

Dec

12

Feb

13

Apr

13

Jun

13

Aug

13

Oct

13

Dec

13

Feb

14

Apr

14

Jun

14

Aug

14

Oct

14

Dec

14

Feb

15

Apr

15

Jun

15

Aug

13

Oct

15

Dec

15

Feb

16

Apr

16

Jun

16

Aug

16

Oct

16

Dec

16

Feb

17

Apr

17

Jun

17

Aug

17

Oct

17

Dec

17

Domestic operators have also been active in this space with Mantra acquiring the Art Series portfolio of hotels (developed by Melbourne’s Deague family) and Event developing their QT and Atura brands. New boutique/lifestyle chains are also being developed, for example Veriu, Tribe and Little National.

BROAD CONSUMER ACCEPTANCE Whilst still in its infancy, Sydney ’s boutique and lifestyle hotel market has expanded over the past six years with the opening and/or repositioning of nine properties and the entry of new lifestyle and soft hotel brands. New rooms have been fully absorbed, highlighting the appeal of this product with consumers, particularly the growing Millennial workforce.

RevPAR growth for lifestyle hotels in Sydney has been stronger than for the broader city hotel market, making it an attractive segment for investors. In 2017 Sydney’s lifestyle segment achieved a RevPAR index of 1.01 when compared to the city hotel market which includes the Sydney Harbour ‘dress circle’ hotels. Occupancy levels were slightly lower (index of 0.96) with many properties located in the city fringe but ADR was higher (index of 1.05). ADR is a key driver of investment returns.

9properties

6 years

SYDNEY GROWTH

OVER

VERIU SYDNEY CENTRAL,NSW

Opened Nov 2017, 110 rooms.



Lifestyle Hotels – the Next Big Thing (cont.)

With the evidence pointing to a potential competitive advantage, we are seeing more investors willing to consider lifestyle brands with many new brands now offered by the major international groups. Lifestyle & boutique hotels currently account for around 10 per cent of the national accommodation pipeline but we expect this to grow in the coming years.

Rapidly gentrifying areas may not be ideal for legacy hotel brands, but they’re perfect for travellers who want to feel more integrated into the fabric of a city and can offer the potential for character-packed buildings. Lifestyle hotels are increasingly being used as ‘place makers’, leading to the creation of vibrant accommodation precincts for creatives and tech workers, and a target for visitors.

EXTENDING APPEAL BEYOND JUST THE ROOMS Globally, luxury lifestyle and boutique hotels have been shown to draw a greater proportion of their revenue from food and beverage with innovative outlets driving additional patronage into hotels, whereas midscale lifestyle brands have relied on the local environment to provide this amenity to guests.

The Australian food and beverage industry has grown strongly in recent years, with an explosion of design-driven spaces which offer genuine customer service and a true point of difference. With more people investing in experiences over material goods, consumers are paying to be enticed and taken on a journey. With a thriving dining culture, founded in fusion, Australia’s bar scene has also expanded with speakeasy’s, gin bars and gastro-pubs.

Historically Australian hotels have steered away from food and beverage with a tendency to lease out spaces or minimise operations altogether, owing to the complexities of operating in a high labour cost environment. Hotel operators will therefore need to adjust business models if they are to compete against an already competitive food & beverage landscape. Outlet design to maximise efficiencies and talent strategies which attract best-in-class staff will be critical if lifestyle hotels are to thrive in Australia.

Select Service

Serviced Apartments

Lifestyle & Boutique

Full Service


Major Markets Accommodation Pipeline

by Product Type

Lifestyle & boutique hotels currently account for around 10 per cent of the national accommodation pipeline

10%

W BRISBANEQLD

Opened May 2018, 305 rooms.

LITTLE NATIONAL 26-38 CLARENCE STREET, SYDNEYNSW

Opening early 2020, 230 rooms.



Investment Outlook & Forecast Indicators

Strong growth in the tourism sector is attracting more investors, broadening the capital base and providing a strong foundation for increased activity over the medium term. With more than $1 billion worth of hotel assets currently being marketed or in play, we expect transaction activity to increase in FYE2019. Deals are taking longer, however, as banks have tightened their lending and policy changes impact the structure of global funds.

Investors from Mainland China have fallen behind the rest of Asia as the largest group of inbound capital. This trend is likely to continue with South East Asian investors dominating the offshore investment landscape, driven by renewed interest in diversification, both in terms of location and product. Despite recent government crackdowns on outbound capital, Chinese investors still have the appetite to invest however their investment criteria has changed and we expect to see fewer acquisitions of high-profile trophy assets as a result.

Australia remains a favoured hotel investment market due to its economic performance, stability, transparency and governance. Population growth, large infrastructure projects, increasing urbanisation and strong state economies are also driving valuation growth and supporting opportunities for new hotel development.

More than

$1 bnworth of hotel assets currently being marketed or in play

LINDEMAN ISLAND,WHITSUNDAYS QLD

Colliers International is proudly undertaking an

operator search on behalf of White Horse Australia.



Based on the yield evidence, the past four years has seen a continued compression of yields; from over 9 per cent in 2013 to just under 6 per cent in FYE2018 and approaching the level of the last cyclical low in 2011. We expect to see little change over the coming year, although a slight softening is likely in those markets where there is significant new accommodation supply.

As Australia transitions to a more diversified service-based economy, tourism is becoming increasingly important and has the potential to be Australia’s fastest growing industry. Globally, travel continues to take a larger share of consumer spending and visitor expenditure in Australia is projected to continue to grow at a strong rate.

The influence of demographics presents new opportunities for the hotel sector, as developers and brands seek to remain ahead of the curve in catering to both established and emerging generations of corporate employees and leisure travellers. Strong growth in inbound tourism, particularly from China, increased leisure travel by wealthy retiring baby boomers and catering to Millennials as the largest segment of the workforce are all factors which investors should consider over the coming year.

Investment Outlook & Forecast Indicators (cont.)

SYDNEY

FYE18Forecast FYE2019

Occupancy 87.8% No change

ARR $264 Increase

RevPAR $232 Increase

Yield Range 5% to 6% No change

MELBOURNE


Occupancy 85.7% Decline

ARR $206 No change

RevPAR $176 No change


BRISBANE



ARR $157 Increase

RevPAR $116 No change


HOBART



ARR $170 Increase

RevPAR $135 Decline

Yield Range 7% to 9% Softening likely

ADELAIDE


Occupancy 80.8% Increase

ARR $157 Increase



DARWIN



ARR $145 Increase



PERTH



ARR $167 Decline

RevPAR $125 Decline

Yield Range 7% to 9% Softening

Note:Occ = Occupancy ARR = Average Room Rate RevPAR = Revenue Per Available Room

CANBERRA

FYE2018Forecast

FYE2019*


ARR $175 Increase



* Subject to the timing of the next Australian federal election

Hotel Forecast Indicatorsby Product Type

9%FYE2013

6%FYE2018

to

COMPRESSION OF YIELDS

a slight softening is likely in those markets where there is significant new accommodation supply.



Detailed Transaction List TRANSACTIONS $10 MILLION PLUS, FYE2018 Transactions deemed confidential have been omitted

NSW PROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Four Points by Sheraton Central Park (under construction)

Sydney 297 $145m Jul-17 $488,215 Impact Investment Private

Byron Bay Hotel & Apartments Byron Bay 43 $27.5m Aug-17 $639,535 Chase Property Investment Fund

Quest Nowra Nowra 81 $17.5m Sep-17 $216,049 NA Unknown

Mercure Sydney International Airport Wolli Creek 271 $76.4m Nov-17 $281,919 Rockdale Hotels Investment Fund

Quest Griffith Apartments Griffith 68 $15.3m Feb-18 $224,265 Railway Street Holdings Investment Fund

North Shore Hotel North Sydney 27 $10m Feb-18 $370,370 Frank & Wade Huang Private

Breakfree on Clarence Hotel Sydney 52 $30m Mar-18 $576,923 Elanor Investors Owner Operator

Quest Newcastle West Newcastle 78 $16m Jun-18 $205,128 Unknown Investment Fund

VICPROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

All Seasons International Bendigo Bendigo 77 $24m Aug-17 $311,688 Moelis Private

Mercure Treasury Gardens Melbourne 164 $70m Sep-17 $426,829 Pearl Hotels Developer

Sheraton Melbourne Melbourne 174 $126.9m Oct-17 $729,310 Golden Age Corporate

Adina Melbourne Melbourne 65 $43m Nov-17 $661,538 Schwartz Family Private

Royce Hotel Melbourne 100 $55m Dec-17 $550,000 NA Private

Quest Ballarat Ballarat 55 $10.5m Dec-17 $190,909 NA Private

Chateau Yering Yering 32 $14m Jan-18 $437,500 NA Owner Operator




QLD PROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Shamrock Gardens Hotel & Motel Mackay 28 $13.7m Aug-17 $488,107 Redcape Investment Fund

Nobby's Outlook (Future development site) Gold Coast 37 $23.8m Sep-17 $641,892 n.a Private

Mercure & Ibis Brisbane Brisbane 412 $77m Dec-17 $186,893 CDL Hospitality REIT Institution

Red Earth Hotel & Isa Hotel Mt Isa 70 $29m Dec-17 $414,286 n.a Unknown

Emporium Brisbane Brisbane 102 $36.2 Jan-18 $354,706 Anthony John Group Owner Operator

Kingfisher Bay Resort & Village Fraser Coast 152 $43m Feb-18 $282,895 Cosmos Australia Pty Ltd Corporate

Watermark Hotel Gold Coast & Brisbane Gold Coast & Brisbane 482 Confidential Jun-18 Confidential HIS International Investment Fund

Watermark Hotel Brisbane Brisbane 94 Confidential Jun-18 Confidential SB&G Hotel Group Private

Quest Springfield includes Childcare & Retail Brisbane 82 $24.3m Jun-18 $296,494 Springfield City Group Private

WAPROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Sebel Mandurah Mandurah 84 $11m Jul-17 $130,952 FJM Property Offshore

Aire West Perth West Perth 64 $12.5m Aug-17 $195,313 NA Investment Fund

The Richardson Hotel2 Perth 74 $35.8m Sep-17 $483,108 Private Other

Miss Mauds Swedish Hotel Perth 52 $10m Nov-17 $192,308 97 Murray Street Pty Ltd Owner Operator

Holiday Inn Perth City Centre Perth 186 $63.9m Dec-17 $343,441 Hub Land Dato Trust Corporate

ACTPROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Ibis Styles Canberra Canberra 208 $55m Aug-17 $132,212 Chase Property Investment Fund

Quality Hotel Woden1 Woden 57 $16m Aug-17 $280,702 The Tradies Group Owner Operator

Aria Hotel Dickson 128 $35m Dec-17 $273,438 Capital Hotel Group Investment Fund

1 Sold for redevelopment / Site2 Sold for redevelopment / Site



SA PROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Mercure & Ibis Styles Grosvenor Hotel Adelaide 245 $43m Nov-17 $175,510 Kildair Hotels Corporate

TASPROPERTY NAME SUBURB ROOMS PRICE SALE DATE $ PER ROOM VENDOR PURCHASER TYPE

Cape Wickham Links King Island 16 $16m Jul-17 Not applicable Duncan Andrews Corporate


Note: In July 2017, the Australian Government Department of Home Affairs introduced changes to the incoming passenger card. The change was to capture the main reason for journey for both residents returning, and visitors arriving in Australia. The ABS has noted changes in the distribution of responses to the question on main reason for journey for short-term visitor arrivals in recent months, notably an increase in the number of persons reporting that the main reason for travel was visiting friends and relatives and a decline in the number of persons reporting the main reason was a holiday. The ABS is investigating possible explanations for these changes.



Authors

KEY AUTHORS

Gus Moors Head of Hotels, Australia

+61 404 005 066 [email protected]

Karen Wales Director, Hotels+61 405 227 152 [email protected]

HOWARD STREET WHARVES HOTEL,

BRISBANEQLD

Opening Q1 2019, 164 rooms.



Team

NSW

Gus MoorsHead of Hotels, Australia+61 404 005 066 [email protected]

Karen WalesDirector, Hotels+61 405 227 152 [email protected]

Nigel GreenawayNational Director+61 431 288 [email protected]

Michael ThomsonNational Director +61 412 053 [email protected]

Christopher MilouDirector+61 413 615 [email protected]

Robert BirdAssistant Valuer+61 419 124 [email protected]

Denise KirkAnalyst, Hotels+61 414 708 [email protected]

NZ

Dean HumphriesNational Director+64 21 408 [email protected]

Chris BennettDirector +64 21 707 [email protected]

Jackie SuProperty Analyst+64 21 196 [email protected]

Damon PereAssociate+64 21 022 [email protected]

Jack ChartersDirector+64 21 534 [email protected]

QLD

Neil ScanlanNational Director +61 437 700 [email protected]

Baden MulcahyNational Director +61 439 034 [email protected]

Leo CarneExecutive+61 439 736 [email protected]

VIC

Guy WellsAssociate Director +61 405 612 [email protected]

NT

Tony WestDirector, Valuation +61 409 422 [email protected]

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