QLD hotel market set to see strong buyer activity in 2019

The Savills Blog

QLD: Hotel market set to see strong buyer activity in 2019

Queensland’s Hospitality and Tourism market is set for a solid performance in 2019 with demand across the sector remaining strong.  

Strategic regional pub acquisitions are set to continue into the first half of next year. 

Looking at counter-cyclical assets, these should start to demand attention from buyers as the mining industry continues to improve. 

Larger corporate groups are expected to be more active on both the buying and selling side in 2019, with acquisitions being fuelled by trade, profit growth and divestments.  

Multi-venue operators are set to continue their pursuit to strategically acquire regional venues with owners finding comfort in terms of timing to divest their assets. 

In south-east Queensland, pubs will continue to remain tightly held which will keep yields stable. 

South-East Queensland caravan parks and mobile home estates will continue to remain highly sought-after commodities with yields remaining tight. 

Investment returns are expected to mirror the cash rate moves.

The Motel sector has witnessed occupancy rates improve throughout regional areas, with sales volumes expected to increase comparatively next year. 

Investors and buyers should prepare themselves for more publically available opportunities in 2019, with sellers leaning towards on-market sales campaigns to dispose of assets. 

We will most likely see off-market opportunities slow down next year, with more public campaigns imminent. 

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