Excerpt from Sydney Morning Herald
Australia's hot hotels market eased in 2017, racking up a total $2.02 billion in transactions, with Victoria accounting for 45 per cent of the sales volume, according to research from Colliers International.
Colliers head of hotels Gus Moors said the 33 per cent decline in deal activity since 2016 came down to a lack of big five-star hotel deals and the withdrawal of Chinese investors, hampered by government restrictions on foreign spending.
Nonetheless, offshore capital dominated the market, accounting for 62 per cent of the acquisitions. While Chinese investors dropped to 9 per cent of deals from 40 per cent in 2016, other investors from Vietnam, Japan, UAE, Germany, USA and Hong Kong picked up the slack.
The lack of stock is driving investor enthusiasm for acquiring new hotel developments, which made up 19.5 per cent of the total sales volume.
Melbourne’s strong showing is expected to continue with news the Marriott International will relaunch its Le Meridien brand on the site of the Palace Theatre at the top of Bourke Street and open a $250 million Marriott hotel at Docklands.