Australia’s recent craze of developing hotels is set to continue as surging tourism spending, expected to peak at $160 billion by 2025, drives the economy further forward.
8,000 rooms to be constructed by mid-2017
With 8,000 rooms already in the pipe-line, and a further 30,000 rooms expected, even that might not be enough to cope with the consistent flow of overseas tourists and travellers.
As investors and operators gather in Sydney this month for the largest hotel conference of the year, BIS Shrapnel have forecast the total value of all construction to total more that $2.2 billion throughout 2016.
Kim Hawtrey, BIS Shrapnel associate director believes that ‘hotel building is currently enjoying a resurgence, its strongest since the late 1980s.
‘We’re seeing a five-year run for accommodation construction, as the market plays catch-up following the post-GFC slump.’
Suggesting the economy has something to play in the matter, Hawtrey believes that the lower Australian dollar is encouraging residents to remain in-land during their vacation. Furthermore, when entwined with the increasing Asian tourism rates, this has been pushing up the demand for new hotel rooms.
“All of the major state capitals will see sizeable projects commence over the next 12 months, including Adelaide and Perth.”
“We’re seeing a five-year run for accommodation construction, as the market plays catch-up following the post-GFC slump.’
With the all-new Ritz Carlton’s in Melbourne, and Hong Kong Far East Consortium developing in Perth, set to be operated by Marriott, construction is occurring up and down the country.
Further projects to be completed in the near future are, of course, Jame Packer’s Barangaroo hotel for Crown Resorts Casino and Landlease’s new Sofitel hotel at Darling Harbour.
Overall, there’s a huge range of hotels to be built in the near future as casino gaming consistently grows across Australia. Well, at least you won’t have to scramble for a place to stay in the near future — that’s always good news!