The Australasian hotel outlook for 2022-2023 is positive as the return of travel brings confidence and continued market investment. Here, Minor Hotel Group General Counsel and Commercial Officer, Lachlan Hoswell, shares the development outlook for the business.
When we look ahead to 2023, there is plenty to get excited about in the development pipeline for Minor Hotel Group and the broader industry.
On the international investment front, Australia will continue to be a desirable location, with hotels in particular a sought-after asset for overseas investment. On the home front, domestic developer activity and investment in the market is strong and, provided returns meet investor needs, there is money available for feasible projects and performing hotel acquisitions. We expect to see new hotel announcements over the coming 12 months.
Not surprisingly, uncertainty around new build costs will continue to impact feasibilities, however, we do expect the supply chain challenges impacting the construction sector to ease as the industry returns to a new normal after the peak of the COVID-19 pandemic.
For our brands, we see a myriad of opportunities to grow through a strategic combination of franchising, hotel management agreements and leasing arrangements, as well as investing in projects alongside developers, with both popular capital city, urban centre and regional locations currently being considered.
In light of the robust regional market activity in Australia, we are targeting franchise opportunities to expand our Oaks brand, and we look forward to sharing Oaks’ fully equipped serviced apartment model and ‘home away from home’ offering with business and leisure travellers in new locations across the country.
Construction is about to commence on NH Collection in central Sydney CBD which will be the first foray into the Australian market for the brand. We are excited about launching this strong global brand into the market and expanding the brand further throughout Australia.