Portfolio expansions reshape ANZ’s top hotel owners and operators
CBRE research: The ANZ hotels market continues to show growth and investment, driven by strong international and domestic demand
The hotel industry in Australia and New Zealand (ANZ) has seen significant shifts in portfolio growth and rankings among the top hotel owners and operators, according to CBRE’s latest research.
Despite the top-tier rankings remaining largely unchanged, mid-rank movements have altered the competitive landscape as key players expanded their holdings and launched new ventures.
The Winter Issue of AccomNews is out now. Read it HERE
CBRE’s inaugural Australia and New Zealand Top Owners and Operators report surveyed 40 major players in the region, covering nearly 1500 hotels and over 200,000 rooms – representing more than half of the total room supply across ANZ. The findings highlight the resilience and continued growth within the hotel sector, driven by strong international and domestic demand.
Growth continues amid market challenges
Ally Gibson, CBRE’s Head of Hotels Research said: “The ANZ hotels market continues to show growth and investment, driven by strong international and domestic demand. Although we have seen growth moderate, more than half of the owners and operators in both top 10 lists have expanded their portfolios in the past year, reflecting confidence in the market.”
Troy Craig, CBRE’s Regional Director for Hotels Valuation & Advisory, observed that although transaction volumes in 2024 have been subdued, operators remain focused on growth through strategic cost management and operational efficiencies.
When it comes to the top operators list, Mr Craig said consistent with the longer-term trend, there is continued uplift in the proportion of hotel stock under the management and/or branding of the major operators.
“This trend has been propelled by the level of new supply over recent years combined with the proliferation of additional brands from major operators. As the new supply pipeline continues to contract under the weight of feasibility challenges, due to elevated debt and construction costs, operators will inevitably turn their focus back to established assets for growth opportunities,” he said.
“In the long-term operators focussed on, and able to demonstrate, effective cost management strategies will grow their market share in what is a challenging operational expense environment against a backdrop of slowing revenue per available room growth.”
Top 10 owners see significant movement
Sydney-based developer Meriton remains the top hotel owner in ANZ, boasting 23 hotels and 6204 rooms. Their unique position as the only owner to operate 100 percent of their properties also earned them a spot on the operators’ top 10 list, coming in ninth place.
Salter Brothers maintained second place with a portfolio of 35 hotels, including the launch of the Ardour luxury brand.
Meanwhile, the Schwartz Family, the largest private hotel specialist in the region, held the third spot, expanding slightly with the acquisition of Leura Gardens.
Notable shifts in the mid-rankings included EVT’s rise to fourth place after a 10 percent portfolio expansion with 26 hotels and 3,577 rooms.
CapitaLand Ascott Trust was this year’s major mover, recording the highest expansion rate (12 percent) and jumping from seventh to fifth position on the hotel owners list with 18 hotels and 3443 rooms. The expansion included the completion of Citadines North Sydney. Further expansion is planned for later this year with their co-living brand Lyf, adding a further 197 rooms at Bondi Junction.
Another major mover was Pro-invest which jumped from eighth to sixth position on the top 10 list, with 15 hotels and 3196 rooms.
In contrast, major owners like Crown and Millennium and Copthorne saw their ranks drop as competitors aggressively expanded their portfolios.
Top 10 operators hold steady
The top 10 operators saw no major changes over the past year, with Accor maintaining its dominant position by managing 16 percent of the total room supply across ANZ. Accor’s expansion, largely driven by franchising and management agreements, resulted in a combined portfolio of over 4.5 times the rooms managed by its nearest competitor IHG, which manage 13,305 rooms over 63 properties..
Meriton and EVT were the only two companies to make both the owners and operators lists, with EVT managing 85 properties and ranking third in the operators’ category. Ascott, Marriott, and Choice Hotels also recorded notable growth, driven by new openings and acquisitions, securing their positions in the competitive top 10 operators list.
Choice’s acquisition of the City Edge Apartments franchise increased their total room stock by 271 rooms. Although Choice remains in eighth position, they are only 186 rooms behind seventh placed Minor with 7385 rooms under management
As the ANZ hotel market continues to evolve, growth opportunities appear concentrated in strategic expansions and cost management, with established players leveraging their existing portfolios to maintain their competitive edge.
AccomNews is not affiliated with any government agency, body or political party. We are an independently owned, family-operated magazine.