Australia hotel market
Australia’s Hotel Capital Markets See Bifurcation Across 1H 2024
JLL | August 28, 2024
In the current hotel investment environment, we’re witnessing just how crucial strong underlying real estate fundamentals are when it comes to desirability amongst investors and resultant pricing. Like what’s being experienced across the broader CRE sector, certain assets are standing out amongst the pack. As we discussed in our previous article, year-to-date Australian transaction volumes remain subdued as the cost of debt drives a bifurcation of hotel capital markets, with the mid-markets (≤A$40 million) segment of the market having been the most active for the year to date and seeing the greatest depth in capital. Hotel fundame...
Sun Is Still Shining on Australia’s Hotel Industry
STR | February 13, 2023
Australia’s hotel performance turned a massive corner during the first half of 2022 as the Omicron wave subsided and governments relaxed travel restrictions around the country. That freedom translated to consumer confidence, which boosted hotel occupancy for the remainder of the year and further stimulated average daily rate (ADR). Occupancy increases, combined with labor shortages, broader inflationary pressures, a skew toward leisure demand, and consumers’ willingness to pay for experiences, pushed room rates to record highs. That leisure skew started to fade, however, as the year went on and demand broadened, giving furthe...
STR: Australia Hotels Show Holiday Demand Lift
STR | December 20, 2021
ADELAIDE — December 20, 2021 — Lifted by the upcoming holiday season, occupancy on the books is rising in Australia’s key hotel markets with Brisbane and Adelaide nearing 70% for New Year’s Eve, according to STR’s Forward STAR. “The timing is perfect for Australia’s hotels as restrictions are eased just as the holidays draw nearer and summer begins in the southern hemisphere,” said Matthew Burke, STR’s regional manager for the Pacific region. “Occupancy on the books is once again trending upward, and throughout the holidays, levels are already sitting above 60% in some key markets. With more reopening around the...
STR: Australia Hotel Occupancy on a Steep Decline Amid Latest COVID-19 Lockdowns
STR | August 6, 2021
LONDON — August 6, 2021 — After being one of the highest-performing countries during the early portion of 2021, Australia’s hotel occupancy has been on a rapid decline amid the latest COVID-19 lockdowns across the country, according to data from STR through 1 August. “New and extended restrictions amid the latest outbreaks have undoubtedly affected performance in recent weeks,” said Matthew Burke, STR’s regional manager for the Pacific region. “Although winter is likely a precipitating factor for some of the decline, these new restrictions across state borders have meant that a lot of travel is simply not possible. We noted ...
Australia’s Latest COVID-19 Lockdowns Take Their Toll on Hotel Bookings
STR | July 9, 2021
Australia has been one of the highest performing hotel occupancy markets with improving midweek demand alongside continued strength across weekends. Amid recent COVID-19 outbreaks and lockdowns, however, key markets in the country are showing noticeably lower levels of occupancy on the books for the coming weeks. When comparing the Forward STAR data updates of 28 June 2021 vs. 21 June 2021, Sydney’s average decline in occupancy on the books for the coming weeks and months was 13.8%. For the week of 27 June-3 July, Sydney’s hotel occupancy was not expected to exceed 20%, which would be a greater than 50% drop from previous weeks. The...
STR: Australia’s Latest Lockdowns Curtail Hotel Bookings
STR | July 6, 2021
ADELAIDE — July 6, 2021 — Amid recent COVID-19 outbreaks and lockdowns, key markets in Australia are showing noticeably lower levels of occupancy on the books for the coming weeks, according to data from STR’s Forward STAR. Most notable, Sydney’s occupancy on the books is down an average of 13.8% when comparing the 28 June data update with the data release from 21 June. Occupancy for the current week ending 3 July is unlikely to exceed the 20% mark, which would be a 50% decline from previous weeks. “Since the second week of June, the delta strain of the virus emerged in the community, and lockdowns in Victoria followed by New ...
