MARKETVIEW
Nation’s capital showing some
leadership
Australia Hotels, Q2 2017
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 1
$186
*Arrows indicate change from previous year.
Chart 1: Change in RevPAR – H1 2016 v H1 2017
$140 75.7%
Key Points
Annual RevPAR growth for the year ending June
2017 was 1.9% reaching $140
ADR increased 1.3% to reach $186 for the year
ending June 2017
National occupancy jumped to 75.7% recording
growth of 0.6%
Top performers were Canberra and Cairns who
registered annual RevPAR increases of 10.4%
and 9.8% for the year ending June 2017
International visitor arrivals reached a record
high of 7.7m, an increase of 9% on 2016, and
domestic overnight trips were up 3% to 99.4m
Spending by international visitors in the year to
March 2017 was $27.3bn, up 8% on 2016,
whilst overnight spend on domestic trips
increased 6% to $61.7bn
Hotel sales volume for the first half of 2017 were
just over $600m
7.7million +8%
CANBERRA FOLLOWS UP FIRST QUARTER
RESULTS WITH STRONG SECOND QUARTER
Source: STR, CBRE Research.
-15%
-10%
-5%
0%
5%
10%
15%
20%
Perth Brisbane Gold Coast Darwin Melbourne Adelaide Hobart Sydney Cairns Canberra and
ACT
H1 2016 H1 2017
MARKETVIEW
NATIONAL HOTEL PERFORMANCE
CONTINUES TO IMPROVE
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 2
AUSTRALIA HOTELS
ADR OCC RevPAR
ADR OCC RevPAR
Brisbane .
Gold Coast .
ADR OCC RevPAR
Cairns .
ADR OCC RevPAR
Sydney .
ADR OCC RevPAR
Perth .
ADR OCC RevPAR
Darwin .
ADR OCC RevPAR
Adelaide .
ADR OCC RevPAR
Melbourne .
ADR OCC RevPAR
Canberra .
Chart 2: National Overview
ADR OCC RevPAR
Hobart .
Source: STR, CBRE Research, Q2 2017
MARKETVIEW
0
5
10
15
20
25
30
35
$-
$500
$1,000
$1,500
$2,000
H1
-2
00
8
H1
-2
00
9
H1
-2
01
0
H1
-2
01
1
H1
-2
01
2
H1
-2
01
3
H1
-2
01
4
H1
-2
01
5
H1
-2
01
6
H1
-2
01
7
AU
Dm
Sales Volume Number of Sales
TRANSACTION VOLUMES CONTINUE TO
BE SLUGGISH
NATIONAL SUPPLY PIPELINE
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 3
AUSTRALIA HOTELS
Chart 5: National Supply Pipeline – opening before December 2022
Source: CBRE Research
Source: CBRE Research
Table 1: Notable Transactions 2017
Source: CBRE Research
Chart 6:Hotel Sales *above $10million
HOTEL LOCATION SALE DATE PRICE (m) KEYS
Four Points Central Park Sydney Apr-17 $145 297
Intercontinental Double Bay Sydney May-17 $140 140
The New Incholm Hotel & Suites Brisbane Jun-17 $16.5 50
13%
31%
6%12% 13%
11% 81%
38%
38%
18%
-2,000
-
2,000
4,000
6,000
8,000
Adelaide Brisbane City Cairns Canberra Darwin Gold Coast Hobart Melbourne City Perth City Sydney City
Num
ber
of Keys
Proposed DA Applied DA Approved Under Construction Recently Opened To be Removed
MARKETVIEW
CONTINUED STRONG PERFORMANCE
STRONG GROWTH IN VISITOR NUMBERS
•
•
•
•
•
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 4
AUSTRALIA HOTELS
Chart 8: Visitor Nights in Hotels , Motels & Serviced Apartments (rolling
annual)
Chart 7: Hotel Performance KPIs Rolling Annual Change
Source: STR, CBRE Research, Q2 2017
Table 2: Supply Pipeline
Property Development
Type
Quality Number of
Keys
Current
Status
Opening
Date
Holiday Inn
ExpressNew Build
4
Star245
Under
Construction
August
2017
Atura Adelaide
AirportNew Build TBA 165
Under
Construction
January
2019
Frome St Mixed
Use DevelopmentNew Build TBA 208
Under
Construction
June
2019
Sofitel Adelaide New Build5
Star252 DA Approved
June
2019
MINIMAL SUPPLY INCREASES
Source: CBRE Research, Q2 2017
$151 $118 78.0%Adelaide
Source: TRA, CBRE Research, Q2 2017
0
1,000
2,000
3,000
4,000
5,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Property Development
Type
Quality Number of
Keys
Current Status Opening Date
Sage QA Hotel Redevelopment4
Star93
Recently
Opened
April
2017
Holiday Inn
ExpressNew Build
4
Star226
Recently
Opened
May
2017
W Brisbane New Build5
Star305
Under
Construction
April
2018
Westin Brisbane New Build5
Star286
Under
Construction
November
2018
OCCUPANCY GROWTH AT LAST
INCREASE IN TOURIST VOLUMES
•
•
•
•
•
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 5
AUSTRALIA HOTELS
Chart 10: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling
annual)
Chart 9: Hotel Performance KPIs Rolling Annual Change
Source: STR Global, CBRE Research, Q2 2017
Table 3: Supply Pipeline
Source: CBRE Research, Q2 2017
$156 $112 72.2%
Brisbane
Source: TRA, CBRE Research, Q2 2017
SUPPLY INCREASES CONTINUE TO HURT
0
2,000
4,000
6,000
8,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 6
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
$144 $121 84.0%Cairns
SUSTAINED PERFORMANCE GROWTH
DOMESTIC HOTEL NIGHTS DECLINE
•
•
•
•
•
Chart 12: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
DEVELOPERS MOVING IN
Chart 11: Hotel Performance KPIs Rolling Annual Change
Property Development
Type
Quality Number of
Keys
Current Status Opening Date
Abbott Street Hotel New Build TBA 220Under
Construction
November
2018
Rydges
Tradewinds CairnsRedevelopment TBA 55
Under
Construction
January
2019
Bellview site New Build TBA 161 DA ApprovedJune
2019
Table 4: Supply Pipeline
0
1,000
2,000
3,000
4,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-4%
0%
4%
8%
12%
16%
Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 7
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 5: Supply Pipeline
Property Development Type Quality Number of
Keys
Current Status Opening Date
Little National
HotelNew Build
4
Star120
Recently
Opened
September
2015
Mantra Canberra Redevelopment4
Star176
Under
Construction
October
2017
Adobe Belconnen New Build4
Star96
Under
Construction
February
2018
Malmo Bruce
HotelNew Build TBA 60 DA Applied
August
2018
$171 $131 76.7%Canberra
STRONG RESULTS FOR HOTELS
STRONG START TO THE YEAR
•
•
•
•
•
Chart 14: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
LIMITED NEW SUPPLY INCREASE
Chart 13: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
0
1,000
2,000
3,000
4,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-10%
-5%
0%
5%
10%
15%
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 8
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 6: Supply Pipeline
Property Development Type Quality Number of
Keys
Current Status Opening Date
Club Tropical
ResortNew Build
4
Star138
Recently
Opened
September
2016
Best Western
Darwin AirportExtension
4
Star34 DA Approved TBA
Doubletree by
HiltonExtension
4
Star100 DA Approved TBA
Westin Darwin New Build TBA TBAEarly
Feasibility
January
2020
$149 $104 69.8%Darwin
DOWNTURN CONTINUES FOR HOTELS
INTERNATIONAL VISITORS DECLINE
•
•
•
•
•
Chart 16: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
OVERSUPPLY IN THE MARKET
Chart 15: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
0
500
1,000
1,500
2,000
2,500
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 9
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Property Development
Type
Quality Number of
Keys
Current Status Opening Date
Jupiter’s Casino
HotelExtension
5
Star80
Recently
Opened
March
2017
Wanda Vista New Build5
Star171
Under
Construction
December
2018
Aquis Pacific Point
HotelNew Build
5
Star580 DA Applied
December
2019
$187 $134 71.5%Gold Coast
RATE GROWTH DRIVING THE MARKET AS
OCCUPANCY CONTINUES TO DECLINE
DECREASE IN VISITORS
•
•
•
•
•
Chart 18: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
LIMITED SUPPLY IN PIPELINE
Chart 17: Hotel Performance KPIs Rolling Annual Change
Table 7: Supply Pipeline
Source: CBRE Research, Q2 2017
0
2,000
4,000
6,000
8,000
10,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-8%
-4%
0%
4%
8%
12%
Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 10
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 8: Supply Pipeline
Property Development Type Quality Number of
Keys
Current Status Opening Date
ibis Styles New Build4
Star296
Recently
Opened
June
2017
Macquarie Wharf
Shed HotelNew Build
4.5
Star114
Recently
Opened
June
2017
Marriott Luxury
CollectionNew Build
5
Star128
Under
Construction
July
2018
Hyatt Centric New Build5
Star221 DA Approved
March
2019
$172 $143 82.7%Hobart
GROWTH CONTINUES AT A MORE
MODERATE PACE
STRONG INCREASES IN VISITOR NIGHTS
•
•
•
•
•
Chart 20: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
STEADY SUPPLY GROWTH FOR 2017
Chart 19: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
0
500
1,000
1,500
2,000
2,500
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 11
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 9: Supply Pipeline
Property Development Type Quality Number of
Keys
Current Status Opening Date
Four Points
DocklandsNew Build
4
Star273
Recently
Opened
March
2017
South Wharf –
MCEC NovotelNew Build
4.5
Star317
Under
Construction
June
2018
iBis Melbourne
Little LonsdaleNew Build
3.5
Star270
Under
Construction
December
2018
Novotel Melbourne
Little LonsdaleNew Build
4.5
Star213
Under
Construction
December
2018
$186 $155 83.5%Melbourne
OVERALL POSITIVE RESULTS
STRONG INTERNATIONAL VISITOR
GROWTH
•
•
•
•
•
Chart 22: Visitor Nights in Hotels, Motels & Serviced Apartments
rolling annual)
Source: TRA, CBRE Research, Q2 2017
2017 – A YEAR OF CONSOLIDATION
Chart 21: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
0
5,000
10,000
15,000
20,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-15%
-10%
-5%
0%
5%
10%
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 12
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 10: Supply Pipeline
SIGNIFICANT INCREASES IN SUPPLY
$175 $133 76.2%Perth
MARKET SLIDE CONTINUES
DECREASES ACROSS THE BOARD
•
•
•
•
•
Chart 24: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
Chart 23: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
Property Development
Type
Quality Number of
Keys
Current Status Opening
Date
Crown Towers
BurswoodNew Build
5
Star500
Recently
Opened
December
2016
Aloft Perth
RivervaleNew Build
4
Star224
Recently
Opened
May
2017
Intercontinental
PerthRebrand
5
Star240
Under
Construction
October
2017
Westin Hotel New Build5
Star362
Under
Construction
February
2018
0
2,000
4,000
6,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-16%
-12%
-8%
-4%
0%
4%
Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Q2 2017 CBRE Research © 2017 CBRE, Inc. | 13
AUSTRALIA HOTELS
Source: STR Global, CBRE Research, Q2 2017
Table 11: Supply Pipeline
$226 $193 85.5%Sydney
CONTINUED PERFORMANCE GROWTH
INCREASE IN OVERALL VISITOR LEVELS
•
•
•
•
•
Chart 26: Visitor Nights in Hotels, Motels & Serviced Apartments
(rolling annual)
Source: TRA, CBRE Research, Q2 2017
LIMITED IMPACT OF NEW SUPPLY
Chart 25: Hotel Performance KPIs Rolling Annual Change
Source: CBRE Research, Q2 2017
Property Development Type Quality Number of
Keys
Current Status Opening
Date
Hyatt RegencyExtension
5
Star209
Recently
Opened
September
2016
Mantra Sydney
AirportNew Build
4.5
Star136
Recently
Opened
July
2017
Sofitel Convention
CentreNew Build
5
Star616
Under
Construction
September
2017
65-79 Sussex
StreetNew Build
4
Star182
Under
Construction
December
2017
0
5,000
10,000
15,000
20,000
Vis
itor nig
hts
(0
00
s)
International Domestic Total
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
% C
hange
Occupancy Change ADR Change RevPAR Change
SS
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness.
This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior
written permission of CBRE.
AUSTRALIA HOTELS
AUSTRALIA RESEARCH
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