Australia's strong hotel market may drive investors away from big cities

Peppers

Australia's hotel sector is poised to surpass last year’s $2.6 billion in sales as commercial property investors seek to diversify their portfolios. In the first quarter of the year alone, almost $500 million in hotel deals were conducted across the country.

In fact, CBRE claims that hotels are the third-most sought-after asset in the country behind logistics and office space. 

A poll gauging investor intentions across the Asia-Pacific released last week found that 14 percent of investors intended to spend on hotels. This is an increase of 1 percent over last year, CBRE said.

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Still, investors looking to buy hotels in key hubs may find a "lack of stock," as CBRE’s 2016 Asia-Pacific Investor Intentions report said--making regional areas more attractive for future deals. 

Source: Herald Sun

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Choice Hotels International forecast a year of investment, as it looked to build new brands and expand globally.

Pandox adjusted its dividend to allow it to increase its “capacity for future acquisitions and investments”.

“We are strengthening our existing brands and building new ones to appeal to the customer of tomorrow,” President/CEO Pat Pacious said.