An annual survey of major Australian accommodation owners and operators has revealed that strong trading market fundamentals in the country’s major accommodation markets are anticipated to result in ongoing supply growth in the short to medium term.
“Offshore groups account for 50.8 percent of rooms owned by the 30 largest accommodation owners in Australia (by room count),” says Troy Craig, Managing Director – Strategic Advisory Asia Pacific, Hotels & Hospitality Group.
“Local owner Meriton Serviced Apartments (MSA) reported the largest increase in room inventory at 11.2 percent year on year, with the opening of Meriton Serviced Apartments in Chatswood (337 apartments).
“The Schwartz Family maintained their third placing in 2015, despite the disposal of the 250-room Holiday Inn Sydney Airport in late 2014. The company’s high-profile Sofitel Sydney Darling Harbour is currently under construction and due to open in 2017. Once complete, the hotel will add 600 rooms to the Schwartz inventory.”
From the operator side, Australia’s largest accommodation operator, Accor, continues to hold the number one position with 26,336 rooms. The order of the Top Ten ranking did not fluctuate in 2015, even with the addition of 2,814 rooms, an increase of 2.9 percent to 2014, to total 100,301 rooms. Notably, strong growth was reported by Mantra Group (25.1 percent), increasing their portfolio by a total of 11 properties (3,603 rooms).
“Other operating companies which recorded an increase in rooms under management included: Quest Apartments portfolio, which grew by four properties (5.3 percent), InterContinental Hotels Group (3.2 percent), Oaks Hotels & Resorts (2.6 percent) and Toga Far East Hotels (0.6 percent),” said Ross Beardsell, Senior Vice President – Asset Management, JLL’s Hotels & Hospitality Group.
“Domestic groups account for 49 percent of the rooms operated by the 30 largest Australian accommodation operators (by rooms). This compares to 23 percent in 2000 and highlights how domestic players have gained market share over the past decade, underpinned by the growth in serviced apartments.”