As international borders remain closed for the foreseeable future in the midst of the COVID-19 pandemic, regional tourism markets are set to boom with demand from interstate and intrastate travel leading market recovery in the hotels sector.
As Australia continues to ease restrictions and domestic tourism resumes, markets like Wagga Wagga and the wider Riverina catchment across NSW are best placed to capitalise on growth as stir-crazy Australians show a renewed interest in their own backyard.
In 2019, Australians spent $62.3 billion on 9.9 million trips overseas, presenting regional tourism markets with a unique opportunity to capitalise on spending previously allocated to outbound travel.
According to Ian Hetherington, National Head, Capital Transactions, Savills Australia, “Obviously, the current global pandemic will be a contributing factor for a change in the 2020 statistics across the tourism sector, however, interest in the Riverina region looks set to bloom as billions of dollars previously spent on outbound tourism is redirected into the domestic market.”
In light of this, a development set to be the largest hotel in Wagga Wagga with 148 rooms has hit the market this week with offers of circa $45m expected, for the completed asset.
The Holiday Inn Hotel & Suites, Wagga is part of the Mill Development in Wagga Wagga, a large mixed-use development precinct focusing on the adaptive re-use of the iconic heritage-listed Murrumbidgee Flour Mill.
The hotel will feature a 130-room new build hotel, plus an additional 18 suites contained within the heritage-listed Flour Mill and is expected to be fully operational by January 2022.
Situated in one of Wagga Wagga’s most iconic locations, the development is the perfect union of Wagga Wagga’s rich history and contemporary culture. Two restaurants, a large first-class function space and parking for 175 cars ensure the Holiday Inn Hotel & Suites is destined to become a dining and event destination.
Intercontinental Hotels Group (IHG), one of the world’s leading hotel companies, will operate the hotel under a 15-year management agreement. Operating 5,895 hotels globally in over 100 countries, IHG are market leaders in luxury, upscale, midscale and economy accommodation.
Located in the heart of Wagga Wagga CBD, the property is located 400 meters (approx.) from Wagga Wagga Station. The largest inland city in New South Wales, Wagga Wagga is an important agricultural, military and transport hub, and has been identified by the state government as an area of significant population and economic growth.
The building is for sale exclusively through Ian Hetherington, Tim Grosmann, Jordan Lee and Andy Hu of Savills Australia.
Mr Hetherington said in 2019 domestic tourism accounted for 70% of Australia’s tourism industry, exceeding $100 billion for the first time.
“Travel is deeply ingrained within the Australian culture and accounted for almost 6% of annual Australian expenditure in 2019 and has historically proven itself to be resilient against sluggish wage growth and decreasing disposable income,” he added.
The Holiday Inn Hotel & Suites, Wagga Wagga is for sale through Expressions of Interest, closing on 17 September 2020.