As a commercial investor, you have many options open to you, from shop fronts and offices, to warehouses and hotels. If you're interested in the latter, you could be onto a winner as growth in the hotel industry is expected across the country, including in the Brisbane and Gold Coast property market.
Which hotel chains are looking at the Gold Coast?
Traditionally, hotel investment has mostly taken place in Sydney and Melbourne. However, Brisbane alone is set to get 3000 extra rooms between 2016 and 2019, it's biggest boom since it hosted a World Expo in 1988.
IHG, the group that owns InterContinental, Holiday Inn and Crowne Plaza amongst others, reported earlier this year that they see significant growth potential beyond the two big cities. They also reported their biggest ever number of new hotels in the pipeline across the Australasia region.
It's not just IHG who are eyeing up the Gold Coast. W Hotel, who are part of the Marriott group, returned to Australia via Brisbane in June, prioritising the Gold Coast capital above Sydney and Melbourne. Their new offering is the first five star hotel to open on the Gold Coast in twenty years.
Lastly, Accor opened a boutique hotel in Brisbane in 2014 and recently opened a new Novotel in the city too.
Why is the hotel industry on the up?
A new aviation agreement in 2016 saw Chinese airlines get unrestricted access to Australia, while several new free trade agreements increased the demand from corporate travellers – who are historically bigger spenders.
Tourism Research Australia released results in March indicating that international visitors were up 8 per cent to $8.3million in the quarter to March 2018, with nights spent in Australia up by 3 per cent. China were responsible for driving the growth, accounting for 52 per cent of total international visitor growth, with an increase of 13 per cent in both visitors and spend. The body also reported that international tourist spending had increased by 6 per cent to $42.3billion.
The United States, Japan and Hong Kong also contributed to the growth.
Other contributing factors are a weaker dollar and and easier visa application process, both of which could have encouraged more international visitors. The dollar may also have encouraged Australians to holiday domestically to get more for their money.
Ready to talk about your next Gold Coast commercial property investment? Contact the experts at Ray White Surfers Paradise now.
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