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Queensland’s accommodation hotel investment market has witnessed total transaction activity of $323 million so far this year, just shy of the record set in 2010 of circa $400 million.
Mr Craig Collins, CEO – Australasia, Jones Lang LaSalle Hotels said, “Transactions were concentrated in Brisbane and included the 191 room Holiday Inn Brisbane to Shangri-La for $48 million, the Brisbane Marriott (as part of the Marriott Portfolio) and the 154 room Lennons Plaza Hotel Brisbane to SilverNeedle Hospitality at circa $57 million. The largest deal outside of the capital city was the 200 room five star Palazzo Versace at circa $68.5 million.”
The Queensland market has mirrored the Australian market where transaction volumes are also at the second highest level on record at $1.44 billion, behind the 2007 peak of $1.78 billion.
Mr Collins noted, “Queensland has attracted significant investor interest this year with the properties placed in the market being quickly acquired. All of the major transactions noted above were undertaken by either owner-operators or investors with a strategic desire to invest in this region. Notably, Brisbane has historically been a very tightly held investment market, investors acted fast to gain a foothold and this shows in the sale prices that were achieved.”
Mr Peter Harper, Senior Vice President, Jones Lang LaSalle Hotels said, “Brisbane has been one of the standout hotel trading markets this year-to-date with RevPAR growing by 3.0% to surpass the 2008 peak and reach $159. Increased air capacity and visitation growth, particularly from the Chinese market, as well as ongoing corporate demand and a recently extended convention centre that is expected to directly benefit during the planned redevelopment of the Sydney Convention Centre over the next four years, support the continuation of this trading trajectory over the medium term.”
“There’s also been a number of positive stories this year that further support the market’s long term view for Queensland’s hotels including the extensive renovation of the Hilton Brisbane, Sam Chong’s development of the Four Points by Sheraton in Brisbane, and the emergence of new domestic and international investors as witnessed by Peter Bond and White Horse’s acquisition of Dunk and Lindeman Islands respectively,” said Mr Harper.
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