MARKETVIEW Australia Hotels, Q3 Canberra survives leadership challenge $186 $11 7.8% 7.9million +1% *Arrows indicate change from previous year. Key Points CANBERRA MAINTAINS ITS GRIP ON TOP SPOT AND DARWIN MAKES A COMEBACK Annual RevPAR growth for the year ending September was 2.% reaching $11 ADR increased 1.% to reach $186 for the year ending September National occupancy jumped to 7.8% recording growth of.% Top performers were Canberra and Cairns who registered annual RevPAR increases of 13.3% and 9.6% for the year ending September International visitor arrivals reached a record high of 7.9m, an increase of 9% on 216, and domestic overnight trips were up % to 93.7m Spending by international visitors in the year to June was $27.9bn, up 9% on 216, whilst overnight spend on domestic trips increased 7% to $62.bn Hotel sales volume for the first three quarters of was ~$7m Chart 1: Change in RevPAR YTD Sep 216 v YTD Sep 1% 1% % % -% -1% -1% Perth Gold Coast Brisbane Melbourne Hobart Darwin Adelaide Sydney Cairns Canberra and ACT Source: CBRE Research, STR YTD Sep 216 YTD Sep Q3 CBRE Research CBRE, Inc. 1
MARKETVIEW AUSTRALIA HOTELS NATIONAL HOTEL PERFORMANCE CONTINUES TO IMPROVE Chart 2: National Overview Darwin. Cairns. Brisbane. Gold Coast. Perth. Adelaide. Melbourne. Sydney. Canberra. Hobart. Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 2
Number of YTD-28 YTD-29 YTD-21 YTD-211 YTD-212 YTD-213 YTD-21 YTD-21 YTD-216 YTD- AUDm MARKETVIEW AUSTRALIA HOTELS TRANSACTION VOLUMES REMAIN SLUGGISH Chart 6:Hotel Sales *above $1million $3, $2, $2, $1, $1, $ $- 3 2 1 Sales Volume Number of Sales Source: CBRE Research Table 1: Notable Transactions HOTEL LOCATION SALE DATE PRICE (m) KEYS Four Points Central Park Sydney Apr-17 $1 297 Intercontinental Double Bay Sydney May-17 $1 1 The New Incholm Hotel & Suites Brisbane Jun-17 $16. Source: CBRE Research NATIONAL SUPPLY PIPELINE Chart : National Supply Pipeline opening before December 222 1, 8, 6,, 2, - -2, Source: CBRE Research 39% 21% 31% 38% 1% 8% 1% 6% 12% 13% Adelaide Brisbane City Cairns Canberra Darwin Gold Coast Hobart Melbourne City Perth City Sydney City Proposed DA Applied DA Approved To be Removed Q3 CBRE Research CBRE, Inc. 3
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Adelaide CONTINUED STRONG PERFORMANCE $12 $119 78.1% Chart 8: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual),, 3, 2, 1, Source: TRA, CBRE Research, Q3 STRONG GROWTH IN VISITOR NUMBERS Table 2: Supply Pipeline Property Development Type Quality Number of Current Status Holiday Inn 2 Express Atura Adelaide TBA 16 Airport Frome St Mixed TBA 28 Use Development Sofitel Adelaide 22 DA Approved Source: CBRE Research, Q3 MINIMAL SUPPLY INCREASES Opening Date September January 219 June 219 June 219 Chart 7: Hotel Performance KPIs Rolling Annual Change 6% % % 3% 2% 1% % Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc.
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Brisbane OCCUPANCY GROWTH CONTINUES $1 $11 73.2% Chart 1: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 8, 6,, 2, Source: TRA, CBRE Research, Q3 INCREASE IN TOURIST VOLUMES Table 3: Supply Pipeline Property Development Type ibis Brisbane Airport Pullman Brisbane Airport W Brisbane Westin Brisbane Source: CBRE Research, Q3 Quality Number of Current Status Opening Date 3. October 23 October 132 April 3 218 November 286 218 SUPPLY INCREASES CONTINUE TO HURT Chart 9: Hotel Performance KPIs Rolling Annual Change % % -% -1% -1% -2% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc.
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Cairns SUSTAINED PERFORMANCE GROWTH $18 $12 8.3% Chart 12: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual), 3, 2, 1, Source: TRA, CBRE Research, Q3 DOMESTIC HOTEL NIGHTS DECLINE Table : Supply Pipeline Property Development Type Quality Number of Abbott Street Hotel TBA 22 Rydges Tradewinds Cairns Redevelopment TBA DEVELOPERS MOVING IN Current Status Opening Date Bellview site TBA 161 DA Approved November 218 January 219 June 219 Chart 11: Hotel Performance KPIs Rolling Annual Change 16% 1% 12% 1% 8% 6% % 2% % Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 6
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Canberra STRONG RESULTS FOR HOTELS $17 $13 77.2% Chart 1: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual), 3, 2, 1, STRONG YEAR CONTINUES Source: TRA, CBRE Research, Q3 Table : Supply Pipeline Property Development Type Quality Number of Current Status Little National 12 Hotel Mantra Canberra Redevelopment 176 Adobe Belconnen 96 Malmo Bruce Hotel TBA 6 DA Applied Source: CBRE Research, Q3 LIMITED SUPPLY INCREASES Opening Date September 21 October February 218 August 218 Chart 13: Hotel Performance KPIs Rolling Annual Change 1% 13% 11% 9% 7% % 3% 1% -1% -3% -% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 7
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Darwin GROWTH AT LONG LAST $1 $17 71.% Chart 16: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 2, 2, 1, 1, INTERNATIONAL VISITORS DECLINE Source: TRA, CBRE Research, Q3 Table 6: Supply Pipeline Property Development Type Quality Number of Club Tropical Resort 138 Best Western Extension Darwin Airport Doubletree by Hilton Extension Current Status Opening Date September 216 3 DA Approved TBA 1 DA Approved TBA Westin Darwin 2 DA Approved Source: CBRE Research, Q3 CONSOLIDATION IN THE MARKET January 22 Chart 1: Hotel Performance KPIs Rolling Annual Change 1% % % -% -1% -1% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 8
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Gold Coast $187 $13 71.7% RATE GROWTH DRIVING THE MARKET AS OCCUPANCY CONTINUES TO DECLINE Chart 18: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 1,, SLIGHT INCREASE IN VISITORS Source: TRA, CBRE Research, Q3 Table 7: Supply Pipeline Property Development Type Quality Number of Current Status Jupiter s Casino Extension 8 Hotel Wanda Vista 171 Aquis Pacific Point Hotel 8 DA Applied Waterglow Surfers Paradise TBA 216 DA Approved Source: CBRE Research, Q3 GROWING SUPPLY PIPELINE Opening Date March December 218 December 219 January 222 Chart 17: Hotel Performance KPIs Rolling Annual Change 1% % % -% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 9
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Hobart OCCUPANCY DECLINES SLOWING MARKET $172 $1 82.7% Chart 2: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 3, 2, 1, STRONG INCREASES IN VISITOR NIGHTS Source: TRA, CBRE Research, Q3 Table 8: Supply Pipeline Property Development Type Quality Number of Current Status ibis Styles 296 Macquarie Wharf. 11 Shed Hotel Marriott Luxury 128 Collection Hyatt Centric 221 DA Approved Source: CBRE Research, Q3 STEADY SUPPLY GROWTH FOR Opening Date June June July 218 March 219 Chart 19: Hotel Performance KPIs Rolling Annual Change 12% 1% 8% 6% % 2% % -2% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 1
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Melbourne OVERALL POSITIVE RESULTS $186 $1 83.3% Chart 22: Visitor Nights in Hotels, Motels & Serviced Apartments rolling annual) 2, 1, 1,, Source: TRA, CBRE Research, Q3 STRONG INTERNATIONAL VISITOR GROWTH Table 9: Supply Pipeline Property Development Type Quality Number of Four Points Docklands 273 South Wharf. MCEC Novotel 317 ibis Melbourne 3. Little Lonsdale 27 Novotel Melbourne. Little Lonsdale 213 Source: CBRE Research, Q3 Current Status Opening Date March June 218 December 218 December 218 TESTING TIMES AHEAD Chart 21: Hotel Performance KPIs Rolling Annual Change % 3% 1% -1% -3% -% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 11
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Perth GOOD NEWS A LONG WAY OFF $172 $129 7.8% Chart 2: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 6,, 2, Source: TRA, CBRE Research, Q3 DECREASES ACROSS THE BOARD Table 1: Supply Pipeline Property Crown Towers Burswood Aloft Perth Rivervale Intercontinental Perth Westin Hotel Development Type Rebrand Source: CBRE Research, Q3 Quality Number of Current Status 22 2 362 SIGNIFICANT INCREASES IN SUPPLY Opening Date December 216 May October February 218 Chart 23: Hotel Performance KPIs Rolling Annual Change % % -% -1% -1% Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 12
Visitor nights (s) MARKETVIEW AUSTRALIA HOTELS Sydney CONTINUED PERFORMANCE GROWTH $228 $19 8.7% Chart 26: Visitor Nights in Hotels, Motels & Serviced Apartments (rolling annual) 2, 1, 1,, Source: TRA, CBRE Research, Q3 INCREASE IN OVERALL VISITOR LEVELS Table 11: Supply Pipeline Property Development Type Quality Number of Current Status Sofitel Convention 616 Centre Travelodge 3. 29 Mascot 182 Curio Hotel 19 Adina Grand Source: CBRE Research, Q3 LIMITED IMPACT OF NEW SUPPLY Opening Date September September December March 219 Chart 2: Hotel Performance KPIs Rolling Annual Change 8% 7% 6% % % 3% 2% 1% % Source: CBRE Research, STR, Q3 Q3 CBRE Research CBRE, Inc. 13
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