Brisbane’s hotel market is strong with the capacity to grow by up to 450 rooms a year for 10 years, according to research commissioned by economic development board Brisbane Marketing.
Lord Mayor Graham Quirk said Brisbane Marketing and Brisbane City Council were working with the State Government to encourage hotel development and improve the city’s business, convention and tourism potential.
“Current research estimates Brisbane is losing around 87,000 visitors and $130 million in visitor expenditure due to a shortage of hotel rooms,” Cr Quirk said.
“This is equivalent to more than 1100 jobs and $106 million in economic activity for the city, which is why it is an absolute priority for Brisbane.
“Brisbane’s hotel industry has experienced strong trading conditions over a number of years and has the capacity for an additional 299-446 hotel rooms a year for the next 10 years to meet current and future demand.”
Brisbane Marketing’s investment attraction team, working closely with the State Government, through the Department of Tourism, Major Events, Small Business and the Commonwealth Games (DTESB), commissioned research which has been used in A guide to Hotel Investment in Brisbane, Australia to show international investors the opportunities available in Brisbane.
“Brisbane is continuing to grow into a destination of choice for international visitors and events, including the upcoming G20 Leaders Summit 2014, and I want to ensure we can continue to accommodate these events,” Cr Quirk said.
“According to our research, Brisbane’s domestic and international business and leisure visitors are forecast to grow, creating strong demand for more world-class hotels.
“In the Economic Development Plan 2012-2031 I made a commitment to facilitate major new hotel development. As a result the council has introduced a moratorium on infrastructure charges to directly assist the future investment and development of four and five-star branded hotels in the Brisbane City.”
Brisbane Marketing CEO John Aitken has also recently appointed a hotel investment manager who is aggressively targeting international hotel investors, operators and developers for Brisbane.
“Our hotel investment manager is working with potential international hotel investors to encourage them to take advantage of Brisbane’s strong demand for hotel rooms,” he said.
“In fact, she returned this morning from a trip to Singapore, Hong Kong and Kuala Lumpur where she presented opportunities for investment into Brisbane to more than 35 potential investors, operators and industry allies.
“Brisbane is an attractive proposition for potential investors and has been ranked as the fourth most sought-after location for hotel investment in the world in the Jones Lang LaSalle Hotels’ Hotel Investor Sentiment Survey.
“The many recent acquisitions and planned refurbishment and expansion of existing hotels show there is great interest in Brisbane’s hotel market.”
Recent acquisitions of existing hotels and new hotel plans include:
- SilverNeedle Hospitality announced it would refurbish and extend the Brisbane’s Chifley Hotel, converting it from a 150 room to a 300 room hotel – one of the largest, recent hotel repositioning projects in Australia.
- The Brisbane Marriott was purchased by the Malaysia-listed Starhill Real Estate Investment Trust (as part of a portfolio for a total of $415 million)
- Shangri La Hotels and Resorts group purchased the Holiday Inn for $48 million and will operate it as Traders Hotel.
- Starwood Hotels & Resorts Worldwide and Felicity Hotel will open a Four Points by Sheraton hotel in the Brisbane CBD by January 2014.
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