Tourism assets seeing higher demand
As Australians start travelling both domestically and internationally again, demand for tourism and hotel assets is on the rise. New data from Ray White has found there’s been a sharp improvement in hotel occupancy rates across most of the country, particularly in Darwin and Cairns.
Recent aviation statistics reiterate this sentiment with domestic passenger movements edging back up to pre-COVID-19 levels. They were recorded at 4.52 million for the month of June, and while this figure is up 92 per cent on the year, it’s still behind the 5 million achieved prior to 2020.
As a result, demand to purchase hotel assets has continued to increase according to Ray White.
“Offshore buyers have been active investors into the Australian tourism market, however, after a couple of quiet years for the asset class, investment is tipped to pick up,” Ray White said.
“Remembering that across the country occupancy sits 68.9 per cent, up from 38.5 per cent a year ago, while average daily room rates enjoyed a 22.3 per cent uptick back to above $230 per night.
“These ongoing improvements in occupancy and revenue together with improving international aviation and domestic travel statistics make it an attractive investment choice.”