CBRE: Australia is a service-based economy now

According to CBRE Hotels' latest Australian Hotel Market Update, RevPar grew by 3.4 percent across Australia's major hotel markets in the first half of 2015, which led Ken Smith, regional director of CBRE Hotels Pacific, to say: "This trend reinforces the shift in Australia's economic activity away from a reliance on mining to a services based economy."

Smith added: "The accommodation sector is forecast to continue to benefit from growth in both international and domestic visitor room night demand due to a lower Australian dollar, tourism initiatives and significant hotel development pipeline."

CBRE Hotels' market update also highlights a notable tightening in investment yields, with a significant number of large transactions having been completed in the past 12 months on initial yields below 6.5 percent.

In relation to supply, CBRE Hotels is currently tracking over 37,000 new rooms across the ten key cities in the country, with over 14,000 of these expected to come on line over the next three and a half years.

Oscar Westerlund, Sr. director of CBRE Hotels' Strategic Solutions division, said, "The fundamentals for new projects are beginning to align with investor expectations and we are receiving high levels of enquiry for new developments across Asia Pacific."