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News release


Australia's accommodation market poised for growth

The Australian accommodation market is once again poised for growth with room supply increasing 1.3% over the year to June 2013 to be at the highest level ever recorded. Major owners and operators are lining up to take advantage of the return to growth, according to Jones Lang LaSalle's latest Top Owners and Operators survey results.

Of the 230,064 accommodation rooms in Australia, the top ten owners accounted for 11.3% (26,085 rooms) of total room supply at the end of 2013 and the top ten operators 40.7% (93,691 rooms). Rooms owned by the top ten owners have increased at an average rate of 1.4% per annum since 2000, in line with the growth in total accommodation supply, whereas the top ten operators have grown at a stronger rate averaging 5.9% per annum.  Both recorded growth in 2013.


Australia's Top Ten Owners recorded a 1.0% increase in rooms in 2013 with the net increase of 267 rooms. Merger and acquisition activity brought one new entrant into the top ten which, with one major sale and some slight changes in portfolio holdings, has impacted the top order. 

Mr Craig Collins, CEO – Australasia, Jones Lang LaSalle's Hotels & Hospitality Group said, "There was one new entrant into the top ten owners in 2013; Abu Dhabi Investment Authority (ADIA) catapulted into the top position following the acquisition of Tourism Asset Holdings (TAHL) portfolio which comprised 4,352 rooms across 33 hotels which are leased to Accor. The sale saw TAHL exit the sector after more than a decade in the top spot."

"The transaction represented the first major direct hotel acquisition by a Middle Eastern group in Australia, resulting in ADIA, the largest Sovereign Wealth Fund in the Middle East, becoming one of the biggest hotel owners in the world; possessing over $3 billion worth of global hotel real estate. Offshore groups now account for 53% of rooms owned by the 30 largest accommodation owners in Australia." continued Mr Collins.

Mr Collins added "International investors have made significant in-roads to Australian hotel real estate over the past five years as Australian funds have sold down their hotel real estate holdings. The successful sale of the Four Seasons Sydney by Jones Lang LaSalle's Hotels & Hospitality Group in 2013 for Eureka Funds Management saw Eureka exit the top ten owners list, marking the end of an eight-year run."  

Local owner Meriton Serviced Apartments (MSA) moved into second place following the opening of two new properties – MSA Brisbane on Heschel Street (259 keys) and the MSA North Ryde (210 keys). Meriton Serviced Apartments now operates 13 properties with 3,257 rooms and with more in the pipeline.

Australia's Top Ten Accommodation Owners

 HotelsRoomsGrowth %Origin
ADIA334,352n/aAbu Dhabi
Meriton Apartments133,25729.0%Australia
Schwartz Family Co.123,1223.0%Australia
AHL Limited182,5635.9%Australia
Toga Group*192,3661.1%Australia
Crown Resorts52,2900.0%Australia
Mirvac 132,0700.0%Australia
Stamford Land Corp71,7660.0%Singapore

Source Jones Lang LaSalle, Note: * Includes joint venture properties with Far East


Whilst accommodation owners recorded little change in portfolio holdings over the past year, operating groups have been very active resulting in some significant changes to the top order.

Collectively the top ten operators increased portfolio holdings 2.5% (2,274 rooms) bringing the total rooms under management to 93,961 across 963 properties. However, four companies recorded double-digit growth with the most significant gains by Toga Hospitality (30.4%), Hilton (27.9%), Best Western (12.1%) and Oaks Hotels & Resorts (10.7%).

Australia's Top Ten Accommodation Operators

Operating Co.No.RoomsGrowth %Head Office
Mantra Group10314,5634.8%Domestic
Choice Hotels *2008,843-9.6%Domestic
AHL Limited417,5439.3%Domestic
Toga Hospitality567,45530.4%Domestic
Quest Apartments1166,8694.3%Domestic
Best Western *1756,39912.1%Nth America
Oaks Hotels 355,01910.7%Thailand
Hilton Hotels133,90127.9%Nth America

Source Jones Lang LaSalle, *Note: Not provided, sourced from website

"Toga Group accelerated from seventh to fifth place following significant merger and acquisition activity, including joint ventures with Far East Orchard. In addition to new development and management conversions, eight Rendezvous properties were absorbed into the Toga portfolio, bringing the total number of rooms under management to 7,455, a 30.4% increase." stated Mr Ross Beardsell, Senior Vice President – Asset Management, Jones Lang LaSalle's Hotels & Hospitality Group. 

Hilton Hotels added four properties (851 rooms) to its portfolio and introduced its DoubleTree by Hilton brand into Australia, resulting in a ranking of tenth. 

This represents a marked change with strong growth by domestic groups evident over the past ten years.  He added, "Domestic groups now account for 46% of the rooms operated by the 30 largest Australian accommodation operators. This compares to just 23% in 2000. "

"As globalisation trends take hold, the Australian operating profile could shift again with an increasing number of international delegations (notably from Asia) scouting for opportunity. Serviced apartment operators view the market as particularly lucrative given the size of this well-established segment, as well as lower barriers to entry in gateway cities when compared to hotels." concluded Mr Beardsell.   

About the Survey

Jones Lang LaSalle's Hotels & Hospitality Group has conducted an annual survey of the major Australian accommodation owners and operators for more than a decade. Information is collated at the end of each calendar year and consolidated results for the top ten owners and operators provided to the industry.