According to an industry intelligence report, Australia’s hospitality market boom will last for at least the next two years. With the influx Asian investments as well as regional visitors, the number of hotel rooms in the country continues to climb.
This rise is due to many factors. The falling value of the Australian dollar attracts tourists and foreign investments. The great climate, natural beauty and a high quality of life also do their part in inviting foreigners to the “Land Down Under.”
One to last
The industry once saw rapid growth building up to the 2000 Olympics. However, because of the global events that followed, the bump didn’t last. In contrast, this new energy in the industry is expected to last longer. Experts estimate a $167 billion total spend in the industry by 2025. In 2010, Australia set a goal of 40,000 new hotel rooms by 2020. Earlier this year, 8,000 rooms have already begun building in addition to the 10,000 previously built.
Hotel developments, especially those in crowded cities, have turned into alternative ways to create properties. Old buildings are being purchased and converted into boutique hotels. For example, 5-star hotel the Primus was built from building that used to house Melbourne’s Water and Sewerage Board.
Not just luxury
While investments for high-end branded hotel chains are certain to rock the industry, other hospitality properties can tap into a potent market. Victoria, for example, experienced double-digit growth in visitor numbers. According to the state government, these tourists spent an average of AU$114 per night. Motels and hostels, other properties that appeal to budget travellers, can also expect to join the hospitality industry boom.
Power moves to look out for
The pipeline is full with major developments scheduled for 2017. Australians in major cities should expect hotels by worldwide chains to start mushrooming. InterContinental, Doubletree by Hilton and the first ever Aloft hotel in the country will rise next year. One of the largest developments in the country in recent years, the Sofitel Sydney Darling Harbour, will start operations in the last quarter of next year.