hotel sales 2017 - tourism investment · 2020-06-08 · 4 hotel sales in australia 2017 colliers...
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An analysis of hotel sales in Australia by Colliers International
HOTEL SALES 2017
Accelerating success.
RESEARCH AND ANALYSIS
REPORT
Following the three strongest years on record, hotel sales volumes across Australia eased back in 2017, reaching $2.02 billion on 47 sales tracked by Colliers International. Whilst moderating, volumes remain well above the long-term average of $1.25 billion. Some of the notable trends evidenced through the year include:
• Victoria topped the nation with 45% of total hotel sales by value, compared with 23% in NSW. Hotel sales in Melbourne included the Hilton Melbourne South Wharf (the year’s largest transaction at $230 million), Sheraton Melbourne and the Mercure Melbourne Treasury Gardens. Mercure Geelong represented the largest transaction outside of the Melbourne CBD.
• After dominating activity over the past few years, NSW was very subdued in 2017, with only eleven transactions in total and none in the core Sydney CBD. A number of large metropolitan hotels transacted, notably the InterContinental Sydney Double Bay and the Mercure Sydney International Airport.
• There was significant activity in relation to new turnkey developments with hotel development deals totalling $394 million, almost one quarter of the total volume. The limited level of existing inventory being offered is pushing investors into the development and turnkey space. Key development transactions included the W Melbourne, Four Points by Sheraton Central Park Sydney and Quest Penrith.
• Offshore capital continued to dominate, accounting for 62% of the total sales value but with a notable broadening of the capital base with purchasers from Japan, Singapore, USA, Hong Kong, Vietnam, Germany and the UAE. Chinese investors dropped from 40% of total sales in 2016 to just 9% in 2017, as restrictions on outbound capital slowed activity. Strong growth in Australian tourism is attracting more diverse investors to the sector.
• Based on the availability of yield evidence, the past four years has seen a continued compression of yields; from over 9% in 2013 to just under 6% in 2017 and approaching the level of the last cyclical low in 2011.
• 2018 is likely to see similar patterns to 2017, with limited opportunities in Sydney and Melbourne, as owners in those markets continue to enjoy strong cashflow. More activity is likely to occur in the metropolitan markets and other State capitals, as owners capitalise on limited inventory in the market. The robust pipeline of new hotels should see activity increase again over the medium term.
As always, we welcome your thoughts and feedback.
Gus MoorsHead of Hotels Australia
Origin of Hotel Purchasers by Value ( >$5 million)
Benchmark Passing Yields of Hotel Transactions
Yield Ranges - 2017 Hotel Transactions
2017: a year in review
Source: Colliers International
4%
5%
6%
7%
8%
9%
10%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: Colliers International
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Sydney Melbourne Brisbane Perth Other CapitalCities
Non CBDLocations
Yiel
d Ra
nge
(%)
Source: Colliers International
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
$3,250
$3,500
$3,750
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Milli
ons
Australia Hong Kong Other Singapore USA Japan ChinaSource: Colliers International
3Hotel sales in Australia 2017COLLIERS INTERNATIONAL
NSW
Sale Date Mar 2017
Type Motel
Rooms 21
Price/Room $154,762
Sale Date Mar 2017
Type Hotel
Rooms 61
Price/Room $98,361
Sale Date Mar 2017
Type Motel
Rooms 24
Price/Room $141,666
Cooks Endeavour Motor Inn
Quality Hotel on OliveHotel Blue and Conference Centre
$3,250,000 $6,000,000$3,400,000
NSW,Tweed Heads NSW,
KatoombaNSW,Albury
Property under construction.
Sale Date Mar 2017
Type Serviced Apartments
Rooms 108
Price/Room $272,222
Sale Date May 2017
Type Hotel
Rooms 120
Price/Room $266,666
Quest Penrith (under construction)
Airport Sydney International Motor Inn
$29,400,000 $32,000,000
NSW,Mascot
NSW,Penrith
This price reflects hotel component only
Sale Date May 2017
Type Hotel
Rooms 140
Price/Room $750,000
Intercontinental Sydney Double Bay
$105,000,000
NSW,Double Bay
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Sydney Melbourne Brisbane Perth Other CapitalCities
Non CBDLocations
Yiel
d Ra
nge
(%)
Source: Colliers International
4 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
NSW
Sale Date May 2017
Type Hotel
Rooms 105
Price/Room $142,857
Ibis Sydney Thornleigh
$15,000,000
NSW,Thornleigh
Sale Date Jul 2017
Type Hotel
Rooms 297
Price/Room $488,215
Four Points by Sheraton Central Park (under const.)
$145,000,000
NSW,Sydney
Sale Date Nov 2017
Type Hotel
Rooms 271
Price/Room $ 281,919
Mercure Sydney International Airport
$76,400,000
NSW,Wagga Wagga
This is a development site transaction.
Sale Date Sep 2017
Type Serviced Apartments
Rooms 81
Price/Room $216,049
Quest Nowra
$17,500,000
NSW,Nowra
5Hotel sales in Australia 2017COLLIERS INTERNATIONAL
NSW
This is a turnkey transaction.
Sale Date Feb 2017
Type Hotel
Rooms 53
Price/Room $169,811
Sale Date Mar 2017
Type Hotel
Rooms 384
Price/Room $598,958
Best Western Plus Brooklands of Mornington
Hilton Melbourne South Wharf
$9,000,000 $230,000,000
VIC,Mornington
VIC,Melbourne
Sale Date Feb 2017
Type Hotel
Rooms 294
Price/Room $748,299
W Melbourne (Collins Arch Development)
$220,000,000
VIC,Melbourne
VIC
Sale Date Mar 2017
Type Serviced Apartments
Rooms 28
Price/Room $535,714
Sale Date Mar 2017
Type Hotel
Rooms 138
Price/Room $175,362
Sale Date Apr 2017
Type Hotel
Rooms 42
Price/Room $469,048
Camberwell Serviced Apartment Hotel
Mercure Geelong Flagstaff City Inn
$15,000,000 $24,200,000 $19,700,000
VIC,Hawthorne East
VIC,Geelong
VIC,West Melbourne
Hotel to be demolished for redevelopment.
6 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
VIC
Sale price includes management rights.
Sale Date Jun 2017
Type Backpacker
Rooms 50
Price/Room N/A
All Nations Backpackers Hotel
Morning Star Estate
$27,100,000 $36,200,000
VIC,Melbourne
VIC,Mount Eliza
Backpackers
Sale Date Aug 2017
Type Hotel
Rooms 77
Price/Room $311,688
All Seasons International Bendigo
$24,000,000
VIC,Bendigo
Facility has 100 gaming machines.
Sale Date Sep 2017
Type Hotel
Rooms 164
Price/Room $426,829
Mercure Melbourne Treasury Gardens
$70,000,000
VIC,Melbourne
Sale Date Oct 2017
Type Hotel
Rooms 174
Price/Room $775,862
Sheraton Melbourne
Circa $135,000,000
VIC,Melbourne
Sale Date Nov 2017
Type Hotel
Rooms 65
Price/Room $661,538
Adina Melbourne
$43,000,000
VIC,Melbourne
Hotel to be demolished for redevelopment. Price reflects hotel component only.
Sale Date Jun 2017
Type Resort
Rooms 20
Price/Room N/A
7Hotel sales in Australia 2017COLLIERS INTERNATIONAL
Sale Date Dec 2017
Type Hotel
Rooms 100
Price/Room $550,000
Sale Date Dec 2017
Type Hotel
Rooms 47
Price/Room $164,894
Royce Hotel Mercure Warragul
$55,000,000 $7,750,000
VIC,Melbourne
VIC,Warragul
Sale Date Feb 2017
Type Hotel
Rooms 294
Price/Room $476,190
Sheraton Grand Mirage Resort
$140,000,000
Sale Date Mar 2017
Type Island Resort
Rooms 115
Price/Room $61,207
Heron Island
$7,100,000
QLD,Airlie Beach
Sale Date May 2017
Type Resort
Rooms 59
Price/Room N/A
$16,000,000
Peppers Airlie Beach Resort
QLD,Gold Coast
QLD,Gladstone
Sale price includes management rights.
NSW
QLD
NSW
VIC
8 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
Redevelopment Site
Sale Date Jun 2017
Type Motel
Rooms 36
Price/Room $166,667
Kingsford Smith Motel Hamilton
$6,000,000
QLD,Spring Hill
Sale Date Jun 2017
Type Hotel
Rooms 50
Price/Room $330,000
New Inchcolm Hotel & Suites
$16,500,000
Sale Date Jul 2017
Type Motel
Rooms 35
Price/Room $175,714
Paradise Inn Motel
$6,150,000
QLD,Gold Coast
QLD,Brisbane
QLD
QLD,Gold Coast
Sale Date Sep 2017
Type Motel
Rooms 37
Price/Room $641,892
$23,750,000
Nobbys Outlook
Sale Date Dec 2017
Type Hotel
Rooms 412
Price/Room $186,893
Mercure & Ibis Brisbane
$77,000,000
QLD,Brisbane
Largest beachfront parcel of land available for redevelopment - can be redeveloped for 3 storey property.
Sale Date Dec 2017
Type Hotel
Rooms 102
Price/Room $354,706
Emporium Brisbane
$36,180,000
QLD,Brisbane
9Hotel sales in Australia 2017COLLIERS INTERNATIONAL
ACT,Canberra
Sale Date Apr 2017
Type Motel
Rooms 100
Price/Room N/A
$17,000,000
Sundown Motor Resort
Sale Date Aug 2017
Type Hotel
Rooms 57
Price/Room $280,702
Quality Hotel Woden
$16,000,000
ACT,Woden
Sale price also included the sale of 88 manufactured home sites.
ACT
& V
ARIO
US
Sale Date Nov 2017
Type Hotel
Rooms 245
Price/Room $175,510
Mercure & Ibis Styles Grosvenor Hotel
$43,000,000
Sale Date Apr 2017
Type Motel
Rooms 49
Price/Room $143,878
Adelaide Royal Coach
$7,050,000
SA,Adelaide
SA,St Peters
SA
Sale Date Aug 2017
TypeHotel & Serviced Apartment
Rooms 208
Price/Room $132,212
Byron Bay Hotel & Apartments, Ibis Canberra
$55,000,000
NSW & ACTByron Bay & Canberra
Combined purchase.
10 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
TAS
Sale Date Jul 2017
Type Motel
Rooms 16
Price/Room N/A
Cape Wickham Links
$16,000,000
Sale Date May 2017
Type Boutique Hotel
Rooms 10
Price/Room $445,000
Villa Howden
$4,450,000
TAS,Stanley
Sale Date May 2017
Type Boutique Hotel
Rooms 6
Price/Room N/A
$15,550,000
Hanlon House at Stanley
TAS,Hobart Region
TAS,King Island
This is a golf course transaction.
WA
Sale Date Jan 2017
Type Hotel
Rooms 256
Price/Room $287,109
Novotel Langley
$73,500,000
Sale Date Mar 2017
Type Hotel
Rooms 189
Price/Room $264,550
Crowne Plaza East Perth
$50,000,000
WA,East Perth
WA,Perth
Sale Date Aug 2017
Type Serviced Apartments
Rooms 64
Price/Room $195,312
Aire West Perth
$12,500,000
WA,West Perth
Mixed use project under constriction
11Hotel sales in Australia 2017COLLIERS INTERNATIONAL
Sale Date Jul 2017
Type Hotel
Rooms 84
Price/Room $130,952
Sebel Mandurah
$11,000,000
WA,Mandurah
Sale Date Jun 2017
Type Motel
Rooms 24
Price/Room $351,125
Sale Date Jun 2017
Type Hotel
Rooms 59
Price/Room $214,407
The Royal Palms Residences and Resort
Indian Ocean Hotel Scarborough
$8,427,000 $12,650,000
WA,Scarborough
WA,Busselton
WA
12 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
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13Hotel sales in Australia 2017COLLIERS INTERNATIONAL
SYDNEY
BRISBANE
DARWIN
MELBOURNE
Tony West Director+61 409 422 458
Guy Wells Associate Director+61 405 612 416
Gus Moors Head of Hotels +61 404 005 066
Michael Thomson National Director +61 412 053 598
Chris Milou Director +61 413 615 398
Robert Bird Assistant Valuer+61 419 124 533
Karen Wales Director +61 405 227 152
Neil Scanlan National Director+61 437 700 007
Baden Mulcahy National Director+61 439 034 033
Leo Carne Executive +61 439 736 861
Nigel Greenaway National Director +61 431 288 677
Denise Kirk Analyst | Hotels+61 414 708 112
14 Hotel sales in Australia 2017 COLLIERS INTERNATIONAL
Colliers International does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one-way or the other in relation to the accuracy of such information, figures and projections. Colliers International will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.