Hotel Market Update - Savills
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Australia & New Zealand | Q4 2019
S P OT L I G H T
Savills Research
Hotel Market Update
Australia Int’l visitors up 2.5% • Australia Domestic visitors up 12.3% • NZL Int’l visitors up 2.5%
Australia & New Zealand Hotels - Q4 2019
Hotel investment continues
Awareness, perspective, relative calm is called for in times of turmoil
Hotel investors typically take a long-term view • Bush fires - “All of Australia is burning” to acquire. Investors holding hotels who may
beyond the immediate short-term issues which are • COVID-19 - “Inaccurate digital communication otherwise consider a sale are reluctant to sell an
inevitably resolved. surrounding the transmission and morbidity rates asset, for fear that they will not be able to replace
of the Coronavirus (COVID-19)”. it in the market with an alternative property.
What the past has taught us
Over the past two decades, the tourism industry Fortunately beyond the constant barrage Australian Hotel Sales - Median Passing Yields
has proven to be both resilient and swift in of news, property investors are sanguine 10.0%
rebounding to “business as usual”. Previous and their capital appetite remains high 9.5%
anomalous events have consistently displayed a for investment grade hotel stock. 9.0%
“V” curve rebound: 8.5%
8.0%
A dearth of Australian hotel real estate 7.5%
• 9/11 Terrorist Attacks & Ansett Airline Collapse opportunities and an abundance of 7.0%
(2001) unsatisfied capital 6.5%
6.0%
• Technology Bubble (2001) The Australian hotel market experienced relatively
5.5%
• SARS (2003) higher levels of transaction volume and value 5.0%
• Gulf War II (commencing 2003) during the 2014 and 2015 calendar years, peaking 09 10 11 12 13 14 15 16 17 18 19
• Indian Ocean Boxing Day Tsunami (2004) at a total transaction value of approximately
Key Median Passing Yield Long Term Average
• Swine Influenza Virus (2009) A$3.5bn and 73 recorded transactions in 2015.
Australian Hotels
News travels in a nanosecond Since then, transaction volume and value has Sales Volume ($m) & Total Sales (no.)
The profound impact of digital news which decreased considerably, despite an increasing
delivers an immediate and compelling 24/7 news domestic and global appetite for Australian hotels. $4000 90
service, provides many advantages and rapid In 2019 total hotel transaction value approximated $3500 80
global connections. However, there is a frequent A$2.1bn arising from 48 transactions (compared 70
$3000
tendency to over-sensationalise news before the to A$1.6bn and 41 transactions in CY2018), albeit 60
$2500
facts are available or confirmed. that some transactions counted in the 2019 total 50
are yet to be completed. $2000
40
This is also compounded where internet based $1500
30
“quasi citizen journalists” can post an article The waning transaction volumes and values $1000
20
without having to confirm the veracity of the have occurred due to a number of significant
$500 10
information. These practices have introduced the properties being sold to and held by long term,
frequently quoted “Fake News” into the common intergenerational Asian investors who typically $- 0
09 10 11 12 13 14 15 16 17 18 19
vernacular. The sensationalism of news has been do not trade their assets. In addition, slowing
Key Sales Volumes ($m) Sales Volumes Long Term
highlighted in recent events with the following volumes exacerbate the problem further creating Average No of sales
global messaging examples: adverse perceptions of availability of hotel stock
Source Savills & RCA
savills.com/research 2
Australia & New Zealand Hotels - Q4 2019
TOURISM ECONOMIC GDP EMPLOYMENT
CONTRIBUTIONS CONTRIBUTION
$61 3.1% 5%
Billion of GDP of Australian
Workforce
TOURISM THREATS
& IMPACTS
BUSHFIRES CORONAVIRUS* GLOBAL
(COVID-19) ECONOMY
$4.5bn Potential Tourism
economic loss US-China Trade War
71,429+ reported cases
6m Hectares lost Brexit Uncertainty
1775+ fatalities
1 bn Animals lost Hong Kong Protests
26 Countries affected
40% forward bookings
RESPONSES
GOVERNMENT CORONA VIRUS IMPROVED TOURISM &
(COVID-19) GLOBAL ECONOMIC
$76m Campaigns spend
CONDITIONS
$20m Domestic Vaccine expected in Phase 1
$20m International trial within months Bushfires under control
$10m Hosting Foreign Media De-escalation of US-China
$10m Regional Tourism Event trade wars - Phase One accord
Initiatives UK elections = Brexit certainty
Note – *these figures are accurate at 18 February 2020. They are rapidly evolving.
Transaction volumes and values have not declined Domestic and international funds are mandated More recently the Blackrock 2020 Global
due to a lack of investor interest. Rather, the to chase yield, which in a low interest rate Investment Outlook reasserted that “Real estate
reduced volumes have resulted in a substantial environment necessitates increased capital looks compelling given the neutral outlook on
amount of pent up capital seeking a smaller pool allocations to yield-generating assets, which interest rates and has historically offered resilience
of available assets in a number of extremely tightly includes real estate. against inflation”.
held markets around Australia, causing yield
compression and “fear of missing out” among In terms of global asset allocations, the Blackrock In time the bush fires will be extinguished and
active investors. 2019 Global Institutional Survey (which covered an antivirus will be developed to combat the
230 institutional clients, representing over $7 COVID-19 virus. Things will return to normal;
Domestically, high net worth investors are actively trillion in investible assets) noted the following investor appetite for investment grade hotel assets
investing in hotels due to the strength of the international trends which will continue the trend will continue unabated, and we anticipate a strong
market and the favourable yields being achieved of investors seeking exposure to Australian hotels: “V-shaped” recovery from any downturn caused
compared to other asset classes. by the adverse fire and virus impacts of 2019 and
• Concern about the economic cycle is reflected 2020.
In addition domestic fund managers have raised in the fact that 51% of clients intend to
both domestic and international capital to invest decrease their allocation to equities.
in Australian hotels. Similarly, international • A significant portion of institutions intend to
investors, including pension funds, fund managers increase their exposure to private markets:
and private equity, attracted to the stability and real assets (+54%), private equity (+47%) and
transparency of the Australian investment market, real estate (+40%).
are seeking high yielding hotel assets. • This continues a multi-year structural
trend of clients reallocating risk in search of
There remain significant amounts of unsatisfied uncorrelated sources of return.
capital which are uninvested (other than being • Insurers continue to seek alternative sources
held in cash), which are not generating returns of income by increasing allocations to illiquid
in a low-yield interest rate environment. assets and credit strategies; 66% intend to
increase allocations to real assets.
3Australia & New Zealand Hotels - Q4 2019
Welcome to the latest Savills
Australia & New Zealand YTD Economic Update -
Australia
December 2019 update.
This report covers economic
indicators likely to affect
performance across the hotels
The RBA eased Monetary Policy three times during 2019 to leveraged buyers as well, where debt can be
sector, key performance
all-time lows of 0.75%. The reasoning behind the move was to raised at circa 3% (including all line fees and
indicators across Australia and stimulate the economy whilst keeping inflation within a 2-3% margin over swap), while investing into assets
New Zealand’s major hotel band. Whilst the Government has been slow to implement around 5% (national Office yields are 5%, and
destinations, trends in expansionary Fiscal Policy, the recent bushfire events will Retail and Industrial are circa 6%).
domestic and international result in housing, infrastructure and natural habitat
visitors, plus recent sales rehabilitation expenditure as the rebuilding begins. Overall it is expected that interest rates will
transactions. remain low for longer over the next 2-3 years
There have been unintended consequences from the RBA’s as the national and global economy continues
For the 12 months ended aggressive easing’s, in that low rates have triggered a to produce low economic growth and
September 2019, International meaningful rebound in housing prices over the last four governments implement economic and
and particularly Domestic months. CoreLogic are predicting that if the price rises taxation policy stimulus. The Australian Real
Visitors and Visitor Nights continue at the same rate, they will be back to their all-time Estate outlook remains positive for 2020 and
continued to grow. highs by early to mid-2020. beyond, supported by low for longer interest
rates; under-leveraged property owners; a
Of the 10 Australian key The RBA stated in the February 2020 easing statement, that; densifying population underpinned by a
markets reviewed, 5 markets “the forecasts imply progress towards the inflation target and positive immigration policy and positive
achieved occupancy in excess full employment, but that progress is expected to be only employment growth; and disciplined
of 77%, reflecting the gradual. To maintain this progress, monetary policy is very developers retaining a market of scarcity.
likely to remain accommodative for some time”; and it is
continuing growth in
prepared to ease further if needed to support sustainable The World
international and domestic
growth in the economy, full employment and the achievement 2019 experienced global economic geo-
visitors. Growth in demand for
of the inflation target over time. political events with the US/China Trade and
rooms was achieved in 7
technology dispute, potential impeachment of
markets; however, 3 of those President Trump, Brexit, Hong Kong
markets were impacted by Interest Rates democracy protests and the potential for a
increased new room supply, %
European recession.
resulting in an overall decline 12.0
in RevPAR for those markets, There has been some tempering of economic
as compared to the previous 10.0 impacts with the de-escalation of the trade
corresponding period. and technology disputes between China and
8.0 the US with the Phase One accord which saw a
New Zealand’s RevPAR rebound on the US stock exchange. The
exceeds Australia’s by $7 6.0 recent UK election results has enabled the
(exchange rate adjusted) current government to confirm a Brexit date
which is reflected in the 4.0
of 31 January 2020 offsetting some of last
strength of both occupancy year’s uncertainty and business confidence,
(all key markets above 76%) although there are still issues to be resolved
2.0
and ADR. For the 12 months during the transition year.
ended September 2019, 0.0
International and particularly The US economy continues its longest
DEC -06
DEC -09
DEC -08
DEC -05
DEC -07
DEC -04
DEC -19
DEC -10
DEC -14
DEC -16
DEC -18
DEC -15
DEC -13
DEC -12
DEC -17
DEC -11
economic expansion ever recorded. The US
Domestic visitation grew, with
Federal Reserve maintained interest rates in
a fall in international Visitor
the Q4 19 at a range between 1.5% and 1.75%
Nights being more than
and it is not expected to increase rates until
compensated by a strong Key Small Business Housing Large business Govt.
Bond Yeild - 2yr Govt. Bond Yeild - 3yr Govt. Bond Yeild
2021. Holiday retail sales were up 3% as at
increase in domestic Visitor November 2019 and unemployment is at a 50
- 5yr Govt. Bond Yeild - 10yr Cash Rate
Nights. year low at 3.5% and is expected to maintain a
neutral rate in 2020.
During 2019, both Australia Source ABS, RBA
and New Zealand cut their Whilst there has been signs of improving
official cash rates as respective The demand for Australian property remains strongly driven global economies, the recent COVID-19 will
authorities continued to by domestic investors, A-REIT’s and Syndicators, as well as impact global growth in the short term.
implement accommodative foreign investors chasing secure and superior returns; and in
monetary policy. the case of foreigners, supported by a cheap Australian
currency conversion. The cost of debt remains accretive to
Michael Simpson
Managing Director Hotels
+61 431 649 724
msimpson@savills.com.au
savills.com/research 4Australia & New Zealand Hotels - Q4 2019
Australia and City Hotel Market Operating Performance
Year to Date December 2019
RevPAR
OCC YTD ADR YTD
City Occupancy ADR RevPAR YTD
Growth % Growth %
Growth %
-1.9%
Australia 73.9% -0.9% $185.58 -1.0% $137.18 -1.9%
Sydney 82.5% -1.9% $220.50 -3.0% $181.81 -4.8%
Hobart Area 83.1% 4.7% $184.10 3.0% $152.90 7.9%
Melbourne 80.3% -2.0% $186.11 0.1% $149.44 -1.9%
Gold Coast 69.5% -3.3% $196.84 -2.6% $136.71 -5.8%
Australia wide ACT & Canberra Area 76.4% -2.9% $170.54 -2.8% $130.26 -5.6%
RevPAR decreased Adelaide 80.4% 1.9% $155.55 -0.1% $125.06 1.8%
Perth 73.2% 0.1% $164.40 -1.0% $120.42 -0.8%
Cairns Area 77.4% -3.8% $148.32 -2.8% $114.84 -6.5%
Best RevPAR Brisbane 72.0% 1.4% $157.18 1.4% $113.17 2.8%
growth market:
Darwin Area 55.9% -14.7% $146.20 -0.2% $81.74 -14.9%
Hobart Area
Source STR
7.9%
MARKET WRAP combat new rooms supply with its overall 0.8% decline in RevPAR,
+ Sydney was the top performer robust calendar of events. resulted from a 0.1% increase in
nationally (in terms of dollar value Occupancy and a 1.0% decline
of RevPAR $182), outperforming Gold Coast recorded declines in ADR. Perth will introduce
the next best performing market across all KPI’s due to a 1.3% additional new supply in the next
Worst RevPAR (Hobart) by $29. Sydney however increase in rooms available (to six to twelve months.
performing markets: recorded declines across all KPI’s sell) which was compounded by
Darwin Area (down due to a 2.0% increase in rooms a 2.0% decrease in demand for Cairns area reported a 4.5%
14.9%) Cairns Area available (to sell) against flat room nights. An overall 5.8% increase in rooms available (to
(down 6.5%) growth in demand for room nights. decline in RevPAR, resulted from sell) which exceeded a 0.5%
An overall 4.8% decline in RevPAR a 3.3% decline in Occupancy increase in demand for room
resulted from a 1.9% decline in and a 2.6% decline in ADR. The nights. An overall 6.5% decline
Occupancy and a 3.0% decline in reduction in year to date demand in RevPAR, resulted from a 3.8%
International Visitor ADR. The increase in supply in the for room nights was anticipated decline in Occupancy together
Highlights (Y/E
Mascot airport precinct continued following the staging of the with a 2.8% decline in ADR.
September 2019)
to influence the ability for Sydney Commonwealth games in Gold
International Visitors
were up 2.5% to 8.66m CBD hotels to yield rates which Coast in Q2 2018. For 2019, YTD Brisbane RevPAR grew by 2.8%
& International Visitor was further compounded by the Q4 reported strong RevPAR indicating that the market is
Nights were up 2.1% to impacts from the NSW bush fires growth of 5.3% on YTD Q3. absorbing the recent new supply.
275.79m which commenced in Q4. Sydney Significantly, a 4.0% increase
is ranked Australia’s number ACT/Canberra reported a 5.7% in rooms available (to sell) was
one tourism region in terms increase in rooms available (to sell) surpassed by a 5.4% increase in
of Visitors, Visitor Nights and which exceeded a 2.7% increase demand for room nights whilst
Domestic Visitor
Expenditure for both International in demand for rooms. An overall ADR increased by 1.4%.
Highlights (Y/E
September 2019)
and Domestic visitation. 5.6% decline in RevPAR, resulted
Domestic Visitors were from a 2.9% decline in Occupancy Darwin saw a significant decline
up 12.3% to 115.7m & Hobart area performed strongly and a 2.8% decline in ADR. of 15.8% in demand for room
Domestic Visitor Nights due to a combination of a 2.1% The May 2019 Federal Election nights, representing the lowest
were up 12.0% to reduction in rooms available and subsequent deferment of RevPAR performing market for the
410.1m (to sell) and increase of 2.5% in parliamentary sitting days to period. Despite a 14.7% decline in
demand for room nights, which Q3, have negatively impacted Occupancy, the market managed
enabled this market to achieve the the results for ACT/ Canberra. to hold ADR relatively stable
NSW, VIC, SA and WA
highest growth across all KPI’s decreasing only 0.2%.
recorded double digit
growth in domestic nationally. Compared to other Adelaide recorded a growth in
expenditure Australian capital cities, Hobart occupancy of 1.9% due to a 3.7% International Visitor Highlights
achieves the highest average increase in demand for room (Y/E September 2019) China
regional spend per visitor night by nights which exceeded a 1.8% which represents Australia’s
International Visitors. increase in rooms available (to number 1 international visitor
Visitor Nights varied sell). ADR declined marginally by accounting for 15% of the total
with NT and ACT Melbourne reported a 4.5% 0.1% resulting in an overall 1.8% share of visitors, achieved only
recording declines of
increase in rooms available (to sell) increase in RevPAR. marginal growth YOY. The key
5.7% and 0.3%
which exceeded a 2.5% increase growth market was India which
respectively, TAS and
VIC rose 3.7% and in demand for rooms, resulting Perth showed signs of equilibrium rose by 12.2% in terms of visitors
9.7% respectively with in a 2.0% decline in occupancy. recording a 7.0% increase in and recorded a substantial growth
the remaining States ADR recorded marginal growth of rooms available (to sell) which of 18.7% in Visitor Nights (3.5
recording double digit 0.1% resulting in a RevPAR decline was surpassed by a 7.2% increase million more Visitor Nights YOY).
growth of 1.9%. Melbourne continues to in demand for room nights. An i) Amounts are AUD
ii) Unless otherwise stated percentages are expressed as percentage movements
iii) Unless otherwise stated all comparisons are to the same prior period
5Australia & New Zealand Hotels - Q4 2019
RECENT SALES
TRANSACTIONS Top International Visitor Markets Year Ending September 2019
Hotel Cairns - QLD
Number of Rooms
92
Price Per Room
SOLD | Dec-19
$119,565 01 - CHINA 02 - NEW ZEALAND 03 -USA
TV '000 1 331 TV '000 1 276 TV '000 771
STV 15.4% STV 14.7% STV 8.9%
Ovolo Nishi Canberra VAG 1.2% VAG 1.5% VAG 4.7%
- ACT TVN '000 58,395 TVN '000 12,977 TVN '000 13,168
STVN 21.2% STVN 4.7% STVN 4.8%
Number of Rooms VNAG 1.7% VNAG 0.6% VNAG 0.9%
85
Price Per Room
SOLD | Dec-19 $528,106
Paradise Resort GC -
QLD
Number of Rooms 04 - UK 05 - JAPAN 06 - SINGAPORE
357 TV '000 670 TV '000 455 TV '000 417
Price Per Room STV 7.7% STV 5.3% STV 4.8%
SOLD | Nov-19 VAG -4.3% VAG 8.8% VAG 9.4%
$120,448
TVN '000 20,788 TVN '000 10,892 TVN '000 5,663
STVN 7.5% STVN 3.9% STVN 2.1%
Vibe North Sydney VNAG -7.4% VNAG 4.0% VNAG -0.8%
- NSW
Number of Rooms
International & Domestic Visitors – Who Goes Where?
185
Price Per Room
Year Ending September 2019
SOLD | Sep-19 $510,753
NSW Int'l Domestic
VIC Int'l Domestic
Best Western Lake TV '000 4,387 38,333 TV '000 3,131 29,428
Kawana - QLD STV 50.7% 33.1% STV 36.1% 25.4%
Number of Rooms VAG 1.1% 12.4% VAG 4.4% 12.8%
TVN '000 97,784 119,177 TVN '000 74,329 82,131
81 STVN 35.5% 29.1% STVN 27.0% 20.0%
Price Per Room VNAG 2.4% 12.4% VNAG 5.9% 9.7%
SOLD | Sep-19 $185,185
QLD Int'l Domestic WA Int'l Domestic
Future Citadines
TV '000 2,763 25,704 TV '000 988 10,833
Walker - NSW STV 31.9% 22.2% STV 11.4% 9.4%
Number of Rooms VAG -0.5% 13.7% VAG 4.5% 11.4%
TVN '000 55,216 101,682 TVN '000 24,493 49,642
252
STVN 20.0% 24.8% STVN 8.9% 12.1%
Price Per Room VNAG 1.3% 11.5% VNAG -4.2% 19.6%
SOLD | Sep-19 $802,381
Box Hill Motel -VIC SA Int'l Domestic TAS Int'l Domestic
N
C LS
O
TV '000 TV '000
TI
470 7,883 293 3,142
SA L
Number of Rooms
N VI
A SA
STV 5.4% 6.8% STV 3.4% 2.7%
TR
23 VAG 2.2% 19.3% VAG -4.5% 3.5%
Price Per Room TVN '000 9,780 28,293 TVN '000 4,241 12,622
$259,783 STVN 3.5% 6.9% STVN 1.5% 3.1%
SOLD | Sep-19 VNAG -3.2% 21.2% VNAG -16.0% 3.7%
Base Backpackers,
NT Int'l Domestic ACT Int'l Domestic
N
C LS
O
Magnetic Is - QLD
TI
SA L
N VI
A SA
TV '000 310 1,643 TV '000 271 3,067
Number of Rooms
TR
STV 3.6% 1.4% STV 3.1% 2.7%
32 VAG 7.3% 6.6% VAG 8.8% 8.1%
TVN '000 3,331 9,017 TVN '000 6,117 7,503
Price Per Room N/A STVN 1.2% 2.2% STVN 2.2% 1.8%
SOLD | Sep-19
VNAG -6.8% -5.7% VNAG 18.4% -0.3%
Source: RCA KEY : Total Visitors ('TV '000') | Share of Total Visitors (‘STV’) | Visitors Annual Growth YOY (‘VAG’) | Total Visitor
Nights (‘TVN ‘000) Share of Total Visitor Nights (‘STVN’) | Visitor Nights Annual Growth YOY (‘VNAG’)
Source TRA (Share of total visitors for both International and Domestic Visitors exceeds 100% due to multiple state visits)
savills.com/research 6Australia & New Zealand Hotels - Q4 2019
Australia Year Ending September 2019
Total Visitors up Visitation Nights up Expenditure up
11.6% 7.8% 10.0%
Total Visitors (National + International) Visitor annual growth
12 Months Ending September 2019
+ 6.7%
TV yoy
+ 12.2%
TV yoy
+ 10.8%
TV yoy
+ 18.2%
TV yoy
+ 11.1%
TV yoy
+ 12%
TV yoy
+ 8.1%
TV yoy
+ 2.7%
TV yoy
7Australia & New Zealand Hotels - Q4 2019
Economic
Update - -2.6%
New
Zealand New Zealand wide
The New Zealand economy is softening as other declined by 2.1, resulting from a 1.7% decline in
RevPAR decreased
developed economies are, despite the low interest Occupancy and a 0.4% fall in ADR. Queenstown
rate regime. As with Australia, the Official Cash was the top performer nationally (in terms of dollar
Rate (OCR) is at historical lows of 1% (following value of RevPAR $198), outperforming the next best
easing’s from 1.75% in 2019) and is designed to lower performing market (Auckland) by $37.
Best RevPAR
mortgage rates and stimulate the household balance
growth market:
sheet by generating greater disposable incomes Auckland recorded declines across all KPI’s Wellington
1.8%
thereby promoting consumer spending. due to a 2.7% increase in rooms available (to
sell) which exceeded a 1.6% increase in demand +
The NZ Treasury recorded GDP growth of for room nights. An overall 4.0% decline
+2.4% YOY to June 2019 and are forecasting a in RevPAR, resulted from a 1.0% decline in
marginal deterioration to 2.2% YOY to June 2020 Occupancy and a 3.0% decline in ADR.
before modest upticks from 2021 of circa 2.7%.
Unemployment is forecast to be stable at a positive Wellington Despite a 2.3% increase in rooms Worst RevPAR
4.3%, while inflation will remain low at 1.9% - 2% available (to sell) which exceeded a 0.2% performing market:
Auckland
from 2020 up from 1.7% YOY to June 2019. increase in demand for room nights, RevPAR
4.0%
-
increased by 1.8%. This was achieved from a
In comparison to other developed nations, New healthy 4.0% increase in ADR which was partially
Zealand is performing reasonably well considering offset by a 2.1% decline in Occupancy.
the global impacts of the US/China trade dispute in
particular. The NZ consumer is beginning to spend, Christchurch recorded a 2.8% increase in rooms
with Q4 credit card retail sales highlighting an available (to sell) which exceeded a 0.7% increase in International
increase in spending (+1% sa) driven by discretionary demand for room nights. An overall 2.4% decline in Visitor Highlights
durables (furniture, hardware, appliances), RevPAR, resulted from a 2.0% decline in Occupancy (12 months Ending
hospitality and consumables (non-discretionary). and 0.4% decline in ADR. September 2019)
Year to date however, the combination of strong USA and Canada
continue to
income growth and weaker consumption International & Domestic Visitor Highlights (12
demonstrate strong
spending suggests that households have decreased Months Ending September 2019)
growth in Visitors with
discretionary spending in response to uncertainty International Visitors were up 2.5% to 3.9 million for South Africa and
about future growth in incomes. the year ending September 2019. Taiwan recording
Of the top 10 international visitor markets, Australia double digit Visitors
MARKET WRAP made up 39.2% of the total share of Visitors, with growth
Queenstown reported a 0.8% increase in rooms China following at 10.6%.
available (to sell) which was compounded by a
0.9% decrease in demand for room nights. RevPAR
Domestic
Visitor Highlights
New Zealand & City Hotel Market Operating Performance (12 months ending
Year to Date December 2019 September 2019)
OCC YTD ADR YTD RevPAR YTD Domestic Visitor Nights
City Occupancy ADR RevPAR were up 4% to 23.4m
Growth % Growth % Growth %
New Zealand 77.9% -1.6% $191.81 -1.0% $149.33 -2.6% + 4%
Queenstown 81.7% -1.7% $242.76 -0.4% $198.45 -2.1%
Domestic Visitor Nights
Auckland 81.1% -1.0% $199.25 -3.0% $161.53 -4.0%
to the North Island were
up 5%, and Domestic
Wellington 76.6% -2.1% $187.83 4.0% $143.82 1.8%
Visitor Nights to the
Christchurch+ 76.6% -2.0% $157.09 -0.4% $120.34 -2.4% South Island were up
2.1%
i) Amounts are NZD Source STR
ii) Unless otherwise stated percentages are expressed as percentage movements
iii) Unless otherwise stated all comparisons are to the same prior period
savills.com/research 8Australia & New Zealand Hotels - Q4 2019
Top International Visitor Markets 12 months ending September 2019
01 - AUSTRALIA 02 - CHINA 03 -USA 04 - UK 05 - GERMANY
TV '000 1 530 TV '000 413 TV '000 369 TV '000 234 TV '000 101
STV 39.2% STV 10.6% STV 9.5% STV 6.0% STV 2.6%
VAG 3.8% VAG -8.8% VAG 8.4% VAG 0.1% VAG -0.6%
RECENT SALES International & Domestic Visitors – Who Goes Where?
TRANSACTIONS 12 Months Ending September 2019
Novotel New Plymouth NORTH ISLAND
Hobson Hotel - NPL
Int'l Domestic
Number of Rooms
TVN '000 8,277 15,662
85 STVN 48.3% 66.9%
Price Per Room VNAG -3.1% 5.0%
SOLD | Nov-18 $249,579
Comfort Hotel,
Wellington - WEL
Number of Rooms
115
Price Per Room
SOLD | Nov-18 $211,831
SOUTH ISLAND
Int'l Domestic
Huka Lodge - AKL
TVN '000 8,842 7,766
Number of Suites
STVN 51.7% 33.1%
60 VNAG -1.7% 2.1%
Price Per Room
SOLD | May-19 $87,563
Haka Hotel
Backpacker - AKL
Number of Rooms
63
Price Per Room
SOLD | May-19 $185,714
Source: RCA New Zealand 12 Months ending September 2019
Note: Recent hotel transactions
over 50 rooms
International Domestic Total Visitor
Total Visitors up Nights up
2.5% 4.0%
KEY : Total Visitors (‘TV ‘000’) | Share of Total Visitors (‘STV’) | Visitors Annual Growth YOY (‘VAG’) | Total Visitor Nights (‘TVN ‘000) Source STATS NZ
Share of Total Visitor Nights (‘STVN’) | Visitor Nights Annual Growth YOY (‘VNAG’)
9Savills Hotels Research
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Key Contacts
Michael Simpson Vasso Zographou Max Cooper Rob Williamson Adrian Archer
Managing Director Director Director Director Director
+61 (0) 431 649 724 +61 (0) 449 979 039 +61 (0) 431 776 167 +61 (0) 412 803 482 +61 (0) 481 037 429
msimpson@savills.com.au vzographou@savills.com.au mcooper@savills.com.au rwilliamson@savills.com.au aarcher@savills.com.au
James Cassidy Joanne Morris Lauren O’Neill Timmy Truong Matthew Schutze
Director Associate Director Manager Assistant Valuer Graduate
+61 (0) 478 333 858 +61 (0) 438 887 088 +61 (0) 481 879 876 +61 (0) 435 138 818 +61 (0) 451 407 906
jcassidy@savills.com.au jomorris@savills.com.au laoneill@savills.com.au ttruong@savills.com.au mschutze@savills.com.au
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