Sydney, Melbourne Hit the Jackpot

Thanks to last week’s football festival and, hotels in Sydney and Melbourne had great business. Data showed that there is an influx of interested buyers for the sector.

It appears though that the football season is not just a one-time thing. Even on regular times, hotels are enjoying full capacity.

The influx is good news for the industry. According to Accor and Mantra, many hotels recorded full occupancy during the football festival. Even on times when there is not much activity, hotels like Quest Serviced Apartments were busy.

According to data, hotels are enjoying better revenues per room. About 90 percent of hotel properties in Australia have also been purchased by Asian buyers. Palazzo Versace Hotel was purchased by Chinese investors to a tune of $68 million.

Many Asian investors are also setting their eyes on Australia. Four Points by Sheraton, owned by Singaporeans, is investing about $150 million for the upgrade of the property.

Craig Collins said revenue from hotel transactions is expected to reach as much as $1.82 billion, a figure achieved in 2007. In this year alone, hotel market transactions have increased 130 percent.

Collins is Jones Lang LaSalle Hotels chief executive for Australia.

The chief executive added that power transactions have fueled the industry. Asian and Middle Eastern buyers are expected to pour in more investments in the next 12 months. This includes the $550 million investment of Brookfield to acquire Thakral Holdings.