logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Previous

Press Release
Record breaking Proximity Estate land sale

Next

Press Release
Leisure assets in the spotlight with Silverwater Resort sale
  • Home
  • About CBRE
  • Media Centre
  • Leisure assets enjoy their time in the sun

Leisure assets enjoy their time in the sun

Sydney | 3 August 2016
  • Email
  • Share
  • Tweet
  • Share

Hotel investors are turning their sights on Australian leisure assets in order to capitalise on the current strength in the tourism sector.

The shift is highlighted by new figures from CBRE which show a pick-up in hotel investment activity in regional areas as purchasers seek alternative opportunities to corporate-style hotel investments in the major CBDs.

In 2015, circa $3.2 billion worth of Australian hotels were transacted, with 77% of these based in the CBD markets and only 23% located in regional areas.

Year to date, approximately $1.3 billion in deals have been finalised, with 69% based in the CBD and 31% in regional areas.

CBRE Hotels Regional Director Wayne Bunz said the figures highlighted that investors were turning their attention to leisure offerings as a result of both the current tourism boom and the tightly held nature of CBD markets.

The shift is even more apparent when analysing the sales figures based on number of sales rather than capital values.

“Given that CBD hotels are generally much more expensive than regional assets, analysing the sales data by volume rather than value makes the shift even more apparent,” Mr Bunz said.

“In 2015 there were 53 hotel transactions across the country with 60% of these based in the CBD market and 40% in more regional areas indicating that investors’ primary focus was on corporate focused hotel investments. So far in 2016 we have seen 37 deals done, with 57% of these based in the CBD and 43% in regional areas as investors turn their focus to leisure assets.”

The shift has been highlighted by a surge in hotel investment activity in key leisure markets such as Cairns and the Gold Coast, both of which recorded double digit increases in RevPAR for the year to March 31, 2016.

Growth in revenue per available room (RevPar) was 15.3% for Cairns and 11.3% for the Gold Coast in the year to March as a result of record international and domestic travel numbers. For year to June; , RevPar growth remained high in Cairns at 11.1%, with 7.6% growth on the Gold Coast.

“The Gold Coast and Cairns continue to outperform the rest of the country, posting the highest RevPAR growth rates for any major markets. This is consistent with CBRE Research’s view at the start of the year that these two leisure destinations would see the highest growth rates in Australia in 2016,” Mr Bunz said.

Given the lack of new accommodation coming onto the market in both Cairns and the Gold Coast, demand is expected to outstrip supply in the short to medium term.

“Investors are likely to be keeping a close eye on these markets and will look to pick up any assets that come up for sale and benefit from the growth in these regions,” Mr Bunz said.

This has been highlighted by a string of recent sales, including Tradewinds Cairns and the Novotel Cairns in addition to Gold Coast transactions involving the Hotel Grand Chancellor, Surfers Paradise Marriott and Vibe Surfers.”
For Australian/international news or global stories, follow us on Twitter.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Contact Information

Kathryn House Headshot
Kathryn House
Communications Director
Pacific
+61 2 9333 3585
+61 402 465 440
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube