AU Hotel sales growth up in 2012
Property Here - Wednesday, May 15, 2013
HOTEL sales activity in 2012 was the strongest since 2007 with more than $1.25 billion worth of transactions taking place across the nation, according to Colliers International's hospitality sector report.
Global institutional investors dominated the scene - 70 per cent of buyers came from Malaysia, Hong Kong and Singapore, although Chinese investors were active.
The total value of sales in 2012 was nearly a third higher than the previous year and sellers of hotels were predominantly Australian institutions.
While the hotel sector has outperformed other commercial property assets during the past three years, returns began to soften in the 12 months to December, falling behind the office and industrial sectors.
Despite this, interest from international buyers remains strong as regional demand for leisure tourism and business travel accelerates, Colliers research director Nora Farren said.
This interest is expected to firm in 2013 if the Australian dollar weakens. The largest transaction this year has been the sale of Melbourne's Holiday Inn on Flinders for almost $50 million.
Priscilla David Ltd, linked to New Zealand-based Philip Carter of the Carter Group, bought the 4.5-star hotel.
Last year the annualised average room rate across hotels in Melbourne increased by 0.6 per cent to $173.34 and occupancy rates rose 0.3 per cent to 79.4 per cent.
Darwin recorded the largest growth in occupancy rates of 7.3 per cent to 77.9 per cent, while Perth had the highest occupancy at 85 per cent.
Read more: http://www.news.com.au/realestate/buying/hotel-sales-growth-up-in-2012/story-fndban6l-1226642940202#ixzz2TL8NcLJg