Tourism Investment Monitor 2019–20

Accommodation results (stand-alone)

 

Capital cities


$8.3 billion

Down $0.3 billion
compared with 2018-19

114 projects

20,700 rooms

Regional


$2.8 billion

Up $0.5 billion
compared with 2018-19

54 projects

6,400 rooms

Total


$11.1 billion

No change
compared with 2018-19

168 projects

27,200

 

Summary

Accommodation remains a key requirement for tourism. The changing behaviour of visitors will lead to a growing demand for diverse accommodation options. In recent years there has been a noticeable shift in the pipeline towards environmentally friendly and boutique accommodation investments. The average number of rooms per hotel reduced slightly.

The 2019­-20 pipeline included 168 stand-alone accommodation projects. These were valued at $11.1 billion, with the potential to contribute 27,200 rooms into the tourism accommodation supply. This was 16 more projects than the 2018–19 pipeline. However, there was no change in the total value.

Breakdown by project phase

There were 32 new accommodation projects in 2019–20 pipeline. This was almost half of the number of new projects added in 2018–19. These projects were generally geared towards capital cities, and remained in the proposed and planning phases.

New projects were valued at $1.3 billion, with the potential to add 4,700 rooms. The average value of new developments has been falling over the last few years. However this is due to the size of hotels becoming smaller in response to visitor’s demand for more boutique and tailored accommodation options.

Notable new projects include:

  • Fairmont Port Douglas Resort in Queensland – $300 million and 253 rooms
  • Hyatt Regency Adelaide – $180 million and 295 rooms

Most projects in the 2019-20 pipeline were in the planning phase. There were a total of 102 projects in this phase. These were valued at $6.9 billion, with the potential to add 16,500 rooms. A further 51 projects were under construction. These were valued at $3.7 billion, with the potential to add 8,900 rooms.

 

Twenty projects worth at least $1.2 billion left the pipeline in 2019–20. Reasons include:

  • Recently opened – 13 projects valued at $902 million, adding 2,000 rooms to supply.
  • Abandoned – 1 project valued at $250 million.
  • Deferred – 7 projects valued at over $250 million.

Another 6 hotels entered the pipeline and opened in 2019–20. This means the number of significant stand-alone hotel openings totalled 19. This was considerably lower than 2018–19, which had 32 new hotel openings.

Breakdown by project locations

Most projects were located in capital cities. 114 out of 168 projects were in capitals. The total value of capital city projects was $8.3 billion. The highest value investments were in:

  • Sydney – $2.8 billion across 37 projects
  • Melbourne – $1.6 billion across 33 projects
  • Adelaide – $1.1 billion across 16 projects

By comparison, projects in regional locations were valued at $2.8 billion and mostly distributed across:

  • Queensland ($875 million)
  • Tasmania ($560 million)
  • New South Wales ($520 million)