Cairns, Australia, sees hotel industry growth

In Australia, the northern Queensland city of Cairns is seeing a "revenue surge" in its hotel industry, credited to strong investments and a "thriving" tourism industry. 

RevPAR for hotels and resorts along the Great Barrier Reef is $291.43, a 37.2 percent rise, while in Cairns it has grown 11.3 percent to $99.58.

JLL Hotels and Hospitality Group chief executive Craig Collins said most major hotels had shown RevPAR growth, with Queensland leisure markets displaying the strongest.

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He said hotel sales – driven by Asian buyers – had reached nearly $2 billion in the first half of the year, up 150 percent. That included the Pullman Cairns International and Pacific Hotel Cairns both selling.

Mantra Group area manager Chris Northam said the company was expecting good growth based on the low Australian dollar combined “with key tourism fundamentals aligning in region.”

“We have seen good RevPAR growth year on year as at June 30 with our three well-known brands – BreakFree, Mantra and Peppers. We expect this trend to continue and are forecasting RevPAR to grow further when we review our 2015/16 half yearly position.”

 

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DTZ Investors has purchased the property along with other real estate for more than £70 million.

The company will sell an approximately 5 percent stake in the Shanghai-based hotel operator and franchisor for a nine-figure sum.