WA Development News
Western Australia’s tourism industry is experiencing a remarkable resurgence, driving significant interest and investment in the hotel sector. Recent data from Ray White reveals a stable yet positive trend in hotel transactions, with volumes for 2023/24 reaching $187.3 million, slightly surpassing the previous year’s $186 million. While this figure still falls short of the 2018/19 peak of $276.6 million, it is trending ahead of the ten year average of $170.9 million and indicates a robust recovery and growing confidence in the market. WESTERN AUSTRALIA’S THRIVING TOURISM SECTOR FUELS HOTEL INDUSTRY DEMAND
The influx of capital into Western Australia’s hotel market is notably diverse, with strong interest from international investors, particularly from Singapore and the United States. This global appeal underscores the state’s rising profile as a prime destination for tourism-related investments. Simultaneously, institutional activity remains robust, with investors actively seeking high- quality tourism opportunities that promise long-term growth and stability. Private buyers and sellers continue to play a crucial role in shaping the market landscape. The emergence
Author: Vanessa Rader Head of Research, Ray White
$221.92 per night, up from $214.50 the previous year. These figures not only demonstrate the sector’s recovery but also its potential for further growth and profitability. The Western Australian government’s WAVES (Western Australian Visitor Experience and Spend) initiative is playing a crucial role in sustaining this momentum. By focusing on attracting more sporting events, leisure activities, and visitor experiences, the initiative aims to further boost tourism and create a year-round demand for quality accommodation. This strategic approach is likely to cement the long-term viability of tourism assets, not just in Perth’s CBD but also across the state’s diverse tourism regions. Looking ahead, the interplay between increased tourism, rising hotel occupancy rates, and growing investment interest creates positivity for the sector’s future. As Western Australia continues to enhance its appeal as a destination, we can expect to see further innovations in the hotel industry, potentially including the development of unique, experience-driven accommodations that cater to evolving traveller preferences.
of attractive investment opportunities in both regional and metropolitan areas has caught the attention of savvy investors. Motel assets, in particular, are drawing interest with their appealing yield prospects, ranging between 8% and 10% - a compelling proposition in the current economic climate. The driving force behind this investment is undoubtedly the state’s growing tourism sector. While visitor numbers have remained relatively stable over the past two years, there has been a significant increase in visitor nights. According to data from Tourism Research Australia, visitor nights have grown from 70.8 million (year to March 2023) to 80.4 million (year to March 2024). This 13.6% increase in duration of stays has translated into a substantial 12.7% growth in tourist expenditure, reaching an impressive $17.8 billion. This uptick in tourism activity is reflected in Perth’s hotel occupancy statistics, which show a strong annual result of 77.3% occupancy to August, up from 73.9% the previous year. This increased demand has had a positive impact on average daily room rates, with hoteliers now commanding
132 – October / November 2024
Powered by FlippingBook