Nation’s capital showing some leadership€¦ · Intercontinental Double Bay Sydney May-17 $140 140 The New Incholm Hotel & Suites Brisbane Jun-17 $16.5 50 13% 31% 6% 12% 11% 81%

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


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


AUSTRALIA HOTELS

Chart 5: National Supply Pipeline – opening before December 2022

Source: CBRE Research


Table 1: Notable Transactions 2017


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

•

•

•

•

•


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


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

•

•

•

•

•


AUSTRALIA HOTELS

Chart 10: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling

annual)


Source: STR Global, CBRE Research, Q2 2017



$156 $112 72.2%

Brisbane


SUPPLY INCREASES CONTINUE TO HURT

0

2,000

4,000

6,000

8,000

Vis

itor nig

hts

(0

00

s)


-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


SS

MARKETVIEW


AUSTRALIA HOTELS


$144 $121 84.0%Cairns

SUSTAINED PERFORMANCE GROWTH

DOMESTIC HOTEL NIGHTS DECLINE

•

•

•

•

•

Chart 12: Visitor Nights in Hotels, Motels & Serviced Apartments

(rolling annual)


DEVELOPERS MOVING IN



Type

Quality Number of

Keys


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


0

1,000

2,000

3,000

4,000

Vis

itor nig

hts

(0

00

s)


-4%

0%

4%

8%

12%

16%


% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS



Property Development Type Quality Number of

Keys


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

•

•

•

•

•


(rolling annual)


LIMITED NEW SUPPLY INCREASE



0

1,000

2,000

3,000

4,000

Vis

itor nig

hts

(0

00

s)


-10%

-5%

0%

5%

10%

15%

Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS




Keys


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

•

•

•

•

•


(rolling annual)


OVERSUPPLY IN THE MARKET



0

500

1,000

1,500

2,000

2,500

Vis

itor nig

hts

(0

00

s)


-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%


% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS



Type

Quality Number of

Keys


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

•

•

•

•

•


(rolling annual)


LIMITED SUPPLY IN PIPELINE




0

2,000

4,000

6,000

8,000

10,000

Vis

itor nig

hts

(0

00

s)


-8%

-4%

0%

4%

8%

12%

Jun-15 Jun-16 Jun-17

% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS




Keys


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

•

•

•

•

•


(rolling annual)


STEADY SUPPLY GROWTH FOR 2017



0

500

1,000

1,500

2,000

2,500

Vis

itor nig

hts

(0

00

s)


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Jun-15 Jun-16 Jun-17

% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS




Keys


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

•

•

•

•

•


rolling annual)


2017 – A YEAR OF CONSOLIDATION



0

5,000

10,000

15,000

20,000

Vis

itor nig

hts

(0

00

s)


-15%

-10%

-5%

0%

5%

10%


% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS



SIGNIFICANT INCREASES IN SUPPLY

$175 $133 76.2%Perth

MARKET SLIDE CONTINUES

DECREASES ACROSS THE BOARD

•

•

•

•

•


(rolling annual)





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)


-16%

-12%

-8%

-4%

0%

4%


% C

hange


SS

MARKETVIEW


AUSTRALIA HOTELS



$226 $193 85.5%Sydney

CONTINUED PERFORMANCE GROWTH

INCREASE IN OVERALL VISITOR LEVELS

•

•

•

•

•


(rolling annual)


LIMITED IMPACT OF NEW SUPPLY




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)


-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


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

CBRE HOTELS

Liability limited by a scheme approved under Professional Standards Legislation.

Documents

Nation’s capital showing some leadership€¦ · Intercontinental Double Bay Sydney May-17 $140 140 The New Incholm Hotel & Suites Brisbane Jun-17 $16.5 50 13% 31% 6% 12% 11% 81%