Activity rising in east coast hotel market: iPG

Activity rising in east coast hotel market: iPG
Activity rising in east coast hotel market: iPG

There is an increasingly active east coast hotel market, according to iPG's first quarter 2018 report.

The market is characterised by tight conditions in the Sydney CBD, new supply in Melbourne and near double digit growth in inbound tourism.

iPG, an advisory for investors, expects buoyancy in the hotel sector to continue for the remainder of the year, driven by Chinese investor led acquisitions.

Group CEO, Michael Gu, noted Sydney remains the most significant location for investors and developers with many buyers seeking forward purchase agreements.

Melbourne recorded the highest number of transactions during the quarter.

According to Gu, an emerging trend in Sydney and Melbourne is developments converting from residential to hotels as the housing market cools.

"This should help the hotel market meet burgeoning demand for accommodation," he said.

"Sydney and Melbourne are likely to continue to be the markets with the highest activity levels and strongest ADRs, while Brisbane will also experience improving market conditions."

Tags: 
Hotels East Coast

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