Hotels experiencing solid growth with new outlook

The Property Council of Australia brought together a panel of industry experts and representatives in the Hotel Outlook event to outline the growth of the hotel sector and new markets for future growth.

A key point of discussion was the contribution hotels are making to place making in our cities and ensuring our streets stay vibrant outside of 9 to 5 business hours.

“Hotels have a key role to play in ensuring our cities are vibrant places where people can work, rest, eat and be entertained and the sector is taking a lead role in this regard,” Property Council NSW Executive Director Jane Fitzgerald said.

“Hotels are embracing mixed use development and are breaking new ground –  for example, Pontiac Land Group’s sandstone development that will occur in Sydney’s CBD represents innovative thinking about the places our buildings create.”

The 240-room hotel in Bridge Street will provide a $185 million boost to the NSW economy over 20 years and create hundreds of new construction and hospitality jobs.      

Visitor numbers to Sydney are trending upwards with the number of visitors from Asian markets forecast to hit over 5 million visitors by 2025 and a lot of development capital is coming from offshore, particularly in the Melbourne city, Gold Coast and Sydney City markets and supply increases in 2018/19.

Over recent years we have also seen an increase in foreign purchasers of hotels, particularly in the past three years, with strong interest from Singapore and China which is a good sign of the health of the local market.