Brisbane to see 1,368 new hotel rooms by 2024
Room supply increased by 7.1% per annum between 2014 and 2019.
The hotel room supply in Brisbane increased by an average of 7.1% per annum between 2014 and 2019. JLL notes that since 2017, 12 hotels (2,466 rooms) have opened in central Brisbane and its fringe suburbs.
The analyst is currently aware of six hotels currently under construction in central Brisbane and its fringe suburbs. This reflects an estimated total increase in room supply of 1,368 rooms by 2024.
JLL adds, “The majority of development activity underway is associated with the Queens Wharf development. Also noteworthy are the Voco and Hotel Indigo, which Pro-Invest are delivering in 2022 and are undergoing significant renovations/re-positionings.”
Here’s more from JLL:
Brisbane’s hotel sector continues to demonstrate a positive recovery across the board, as the market rebounds from circumstances surrounding COVID-19. In line with the national experience, intrastate and interstate leisure demand is leading this recovery followed by a surge in the corporate demand as well as improving business events segment.
As at YTD May 2022, Brisbane City’s average daily rate (ADR) and occupancy were AUD 187 and 59.3% respectively. ADR increased 26% from the same period in 2021 and 20% from YTD May 2019. Average occupancy also increased 19% YoY, however remains down 16% from YTD May 2019. Consequently, YTD May 2022 revenue per available room (RevPAR) was AUD 111, representing a significant 50% increase on the prior year, and now sitting at pre-COVID levels (YTD May 2019).
Brisbane’s hotel market is anticipated to continue a positive recovery, as demand returns and the trading environment normalises. Demand growth is forecast to recover over the medium to long term, likely enhanced by significant infrastructure investment and tourism amenity.
Noteworthy are major projects such as the Queens Wharf precinct, Eagle Street Pier, Brisbane Live and the enhancement of venues for the Brisbane Olympics. The pace of future trading performance will also be somewhat conditional on the sustained recovery of corporate and business events segments, as well as the city’s improving position as an appealing leisure destination.