Perths hotel landscape makes its mark on the international stage
Perth's hotel landscape makes its mark on the international stage
| 2 November 2016
Perth’s hotel landscape is in the midst of a major transformation, with a wave of luxury development sweeping the city receiving recognition on the global stage.
CBRE Hotels Senior Director David Kennedy recently spoke at the Property Council of Australia Business Breakfast - The New Hotels Shaping Perth – to provide insight into the state’s growing tourism sector.
With more than 13 new hotels across Perth earmarked for completion over the next two years – supplying an additional 2,600 rooms – Western Australia’s tourism sector is positioned to provide a major economic boost over the coming years.
“Tourism is big business in Australia, worth close to $120 billion for the economy. By contrast, Western Australia’s tourism sector is only worth $10 billion, which leaves huge room for growth and future potential,” Mr Kennedy.
“At the height of the mining boom, our hotel landscape struggled amid limited and dated supply, however, as our economy transitions to a more sustained and healthy environment, our hotel sector is positioned to capitalise on the growing tourism industry.”
Highlighting the Como Treasury, which was recently named the best hotel in Pacific and the world’s second best by Conde Nast Travellers, Mr Kennedy said the wave of hotel development sweeping the city was receiving international recognition.
“Having been significantly under-developed for so many years, Perth is on the brink of a major growth period, underpinned by the premium hotel developments underway across the city,” Mr Kennedy said.
“We haven’t scratched the surface with regards to the potential Perth holds in a tourism sense, and while the economy remains weak, now is the time to develop.”
Mr Kennedy said despite the weaker economic climate, Perth’s hotel market remained robust, averaging a daily rate second only to Sydney.
“Perth remains an attractive tourism destination, with our top visitors including New Zealand, China, the UK, US, Singapore and Malaysia,” Mr Kennedy said.
A flurry of government developments sweeping the city is also expected to underpin growth, with projects including Elizabeth Quay, City Link, the Cultural Centre, Cathedral Square and new Burswood Stadium.
Consolidation of the domestic and international airports will also facilitate passenger movement to the city both by rail and vehicular.
“We will need to endure the economic gloom over the next 18 months, but that provides a prime time to develop. The predication is that Perth will sing in 2020 when government and private development is established and the economy rebounds,” Mr Kennedy said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.