2019 transaction volumes are expected to come in below the long-term yearly average of $1.9 billion, while the development pipeline remains significant
Australian hotel transactions expected to be c. $1.5b for 2019
June YTD saw $500m worth of deals with another $750m in the pipeline
Although transaction volume may tumble, large level of development planned or underway
Australia is experiencing lower levels of hotel liquidity, with JLL Hotels forecasting only $1.5b in deals for 2019 - below the historical average of $1.9b.
Only eight hotels worth approx. $550m transacted for the first six months of the year. JLL estimates another $750m will change hands in 2019.
This represents a drastic drop since the market peaked in 2015, when $3.5b changed hands, with the notable sales of The Westin Sydney and Hilton Sydney for over $400m each.
More recently, transaction volumes for 2017 and 2018 were $1.5b and $1.8b respectively.
Major 2019 hotel deals include:
Felix at Sydney Airport - c. $61m
Next Hotel Melbourne (part of 80 Collins St Devt) - c. $1b (including retail / resi)
Next Hotel Brisbane - c. $150m (including retail)
MACq01 Hobart - c. $50m
Novotel Glen Waverley - c. $150m (including shopping centre)
LinQ Hotel Development - c. $45m
Anticipated 2019 deals include:
AccorInvest's 23 hotel portfolio - c. $300m
Sofitel Sydney Wentworth - c. $300m
Although transaction volume may tumble, there remains a large level of development planned or underway. Major announcements include:
AC Hotels by Marriott - 200 keys
Hilton Melbourne Square - 600 keys
Hyatt Place in Caribbean Park - 170 keys
Ibis Styles/Novotel Melbourne Airport - 464 keys
Oakwood hotel in Dandenong - 98 keys
Veriu in Collingwood - 95 keys
Veriu at Queen Vic Market - 111 keys
Yotel Melbourne Southbank - 244 keys
Ramada by Wyndham Playford - 205 keys
TRYP by Wyndham - 124 keys
Art Series Hotel, The Adnate - 250 keys
Ibis Styles East Perth - 252 keys
Moxy Perth - 150 keys