Australia's booming hotel pipeline may need regulation

Sydney, Australia's business district.

With major investors from across Asia building and buying, Australia's hotel scene is booming, and shows few signs of slowing down. But are hotels Down Under growing too fast?

The Numbers 

According to Tourism Accommodation Australia, the country has 228 hotels with 34,702 rooms currently under construction, approved for development or in advanced planning stages across the country’s capital cities.

Upcoming hotels include Marriott International’s Luxury Collection Hobart, due for completion in 2018, and IHG’s Holiday Inn Sydney Central, scheduled to open in 2020. 

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

The InterContinental Hotel Sydney, meanwhile, is slated for a $200 million renovation.

“Cities such as Perth, Brisbane and Adelaide have been transformed by a substantial number of new hotel openings in the past few years, and Sydney is set to follow suit with $2.3 billion worth of hotel projects already approved and a further $1.9 billion of projects proposed and in advanced stages of planning,” TAA CEO Carol Giuseppi said. “Investor confidence is being supported by Federal and State governments’ commitment to major tourism and urban infrastructure projects including new convention centers, airport facilities and tourism precincts.”

The Flip Side

However, Giuseppi noted, future investment could be put in jeopardy by the growth of unregulated accommodation with no barriers to entry, little transparency and few controls. “It is time for Australian authorities to follow the lead of overseas cities and crack down on the proliferation of commercial short-term operators,” she said.

Suggested Articles

M3 has partnered with Avero, a restaurant revenue-management software company serving the food-and-beverage industry.

Wyndham is relaxing requirements for Wyndham Rewards members to achieve status for the rest of 2020.

This roundup features details on 15 new properties operating in the United States.