Australia’s strong performing hotel sector, particularly in markets such as Sydney and Melbourne, has helped underpin greater investment interest in locations including Brisbane and Perth. In their Hotel Market Report for February 2018, Savills reports that these cities have been running counter-cyclical to Sydney for the past five or six years and this trend is set to continue.
Brisbane is likely to benefit from the Commonwealth Games and activities associated with the Queens Wharf development, in addition to various significant public infrastructure projects and large scale private developments. Similarly, Perth has additional supply still to enter an already soft market, which in the short-term will lead to further downward pressure on both occupancy and room rates. Likewise, this should give rise to buying opportunities for well capitalised counter-cyclical investors.