Strong markets continue to underpin growth

According to the Australian Bureau of Statistics, as at June 2015 Australia’s accommodation supply showed an increase of 8.2% predominantly due to a change in the Survey of Tourist Accommodation (STA) frame, which resulted in the identification and subsequent addition of 279 establishments (18,927 rooms). Strong trading market fundamentals in most major accommodation markets are anticipated to result in ongoing supply growth in the short to medium term.

As at June 2015 there were a total of the 248,573 accommodation rooms in Australia, of which the Top Ten Owners accounted for 10.1% (25,070 rooms) of total room supply at the end of 2015 and the Top Ten Operators accounting for 40.4% (100,301 rooms).

Troy Craig, managing director – strategic advisory Asia Pacific, Hotels & Hospitality Group said: “There was one new entrant into the top ten owners in 2015; Hotel Grand Central moved into 10th place, following Stamford Land Corporation’s departure due to the closure of the Stamford North Ryde (256 rooms).

“Offshore groups account for 50.8% of rooms owned by the 30 largest accommodation owners in Australia (by room count).” continued Mr Craig.

He added, “Local owner Meriton Serviced Apartments (MSA) reported the largest increase in room inventory at 11.2% 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 Holiday Inn Sydney Airport (250 rooms) 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.” concluded Mr Craig.


“Australia’s largest accommodation operator, Accor, continues to hold the number one position with 26,336 rooms.” stated Mr Ross Beardsell, Senior Vice President – Asset Management, JLL’s Hotels & Hospitality Group.

Mr Beardsell said, “The Top Ten ranking order did not fluctuate in 2015, even with the addition of 2,814 rooms, an increase of 2.9% to 2014, to total 100,301 rooms. Notably, strong growth was reported by Mantra Group (25.1%), 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%), InterContinental Hotels Group (3.2%), Oaks Hotels & Resorts (2.6%) and Toga Far East Hotels (0.6%).
Mr Beardsell concluded, “Domestic groups account for 49% of the rooms operated by the 30 largest Australian accommodation operators (by rooms). This compares to 23% in 2000 and highlights how domestic players have gained market share over the past decade, underpinned by the growth in serviced apartments.”

Related Articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Back to top button
WP Tumblr Auto Publish Powered By :
Would love your thoughts, please comment.x