PACIFIC

CBRE|Research

HotelsAustralia

OverviewandOutlook

Confidential&Proprietary|?202CBRE,Inc.1

Hotels|Q12023

?2023CBRE,INC.

2

CBRERESEARCH

Source:ABS,CBREResearch

Numberofarrivals/departures

ChangeonYESept19

HOTELS|2023

HotelsAustralia

104mnTrips23%ADR8,400+$2.14bn

TOURISMDEMANDRELATIVETO2019NEWROOMSUPPLYIN2023+20242022TRANSACTIONS

Note:Arrowsindicatechangefrompreviousquarter.

Figure1:ShorttermOverseasArrivalsvsAustralianDepartures

KeyPoints

-EvenwitharecoveryinAustraliansdepartingforoverseas,domestictravelcontinuestodrivetheAustraliantourismindustry.

-Althoughinternationalvisitationisfirmlyinrecovery,shorttermoverseasarrivalsremain~40%belowpre-pandemiclevels.ThereopeningofChina’sborderswillbekeytotherateatwhichourinboundtourismeconomyrecoversin2023.

-Exceptionalgrowthofperformanceindicatorsin2022-AverageDailyRate(ADR),OccupancyandRevenuePerAvailableRoom(RevPar)-butexpectedtomoderatein2023.

-Newsupplyforthetimebeingwillbelargelylimitedtoprojectsalreadyunderconstruction.Awaveofpremiumstockwilllandinthemajorcapitalcitiesover2023and2024.

-Transactionvolumesin2022wereabovethe10-yearaveragebyvolumeandnumber.Significantequitycapitalisonthesidelineswaitingforsignsofinterestrateandinflationstabilisation.

1,000,000

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

-2351%

-38.08%

ShorttermaustralianresidentShorttermoverseasarrivals

departures

Nov-19Nov-22%change

0.00%

-5.00%

-10.00%

-15.00%

-20.00%

-25.00%

-30.00%

-35.00%

-40.00%

Nights('000)

$(mill)

%change

Hotels|Q12023

Figure2:DomesticTravelNightsbyStateThreeMonthsEndingOct2019vsOct2022

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

NSWVicQldSAWATasNTACT

Oct-19

Oct-22

Figure3:DomesticTravelSpendbyStateThreeMonthsEndingOct2019vsOct2022

28%

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

NSWVicQldSAWATasNTACTAust.

Oct-19Oct-22Change%

70%

60%

50%

40%

30%

20%

10%

0%

Source:TRA,CBREResearch

?2023CBRE,INC.

3

CBRERESEARCH

62%

45%

42%

38%

35%

27%

17%

4%

DomesticVisitation

Homesweethome-maintainingmomentum

Overview

Ifthepandemichadasilverlining,itisthatAustralianshavehadauniqueopportunitytoexploretheirownbackyard.

Giventhedomesticmarkethastraditionallymadeupover80%ofvisitornights,itistherecoveryofthismarketwhichishavingthebiggestimpactontherecoveryofvisitornightsinAustralianhotels.

Figure2showsthatasofOctober2022,domestictravelnightsarenowatoroutpacingpre-pandemiclevelsindomesticdemanddominatedstatesofQld,SA,WAandTasrecognisedfortheirleisuretourismsectors.However,globalgatewaymarketssuchasNSWandVicwhicharemorereliantoncorporateandinternationaltravelforoveralldemandremain8%and4%respectivelybelowpre-pandemicdomesticvisitornights.

Holidayandvisitingfriendsandrelativestravelhasbeenthemajorsourceofdomesticvisitationin2022.Interstatecorporatetravelwhichwasreducedtoverylowlevelsduring2020and2021isgraduallyrebounding.

NotonlyarewetravellingmoreacrossAustralia,butwe’realsospendingmore.

Figure3illustratesthatinthethreemonthsendingOctober2022,domesticovernightspendoutpacedcomparativepre-pandemicspendinallAustralianstates.Domesticdemanddrivenstatesbenefitingfromtheriseinvisitationarealsoseeingthehighestlevelintravelspend.Notably,spendinginTasisup62%on2019levels,inQlddomesticspendis45%abovepre-pandemiclevelsandinWAitisup42%.

Althoughdomesticnightsremainedbelowpre-pandemicratesinNSWandVic,thesestatesarealsorecordingstrongspendgains,up27%and28%on2019levels,respectively.

Alargeproportionofthisincreaseintravelspendreflectstheastonishingincreaseinrategrowthwhichhasaveraged24%nationallyintheyearendingDecember2022.

Outlook

CBREanticipatecontinuedstrengthinthedomestictourismmarketthroughout2023asavolatileAUD,recordhighflightpricesandgeo-politicaltensionsencouragemanyAustralianstoholidayathome.

However,increasingpressureonhouseholdbudgetsviarisinginterestratesandcostoflivingmaydampentherecoveryrate.

LocalintrastatetravelandbudgetfriendlyoperatorsmaybenefitasAustralianfamiliestightentheirbeltsin2023andlooktomorecost-effectiveholidayoptionssuchasthe“GreatAussieroadtrip”.However,strongappetiteforluxuryaccommodationisalsoexpectedtoendurefromlesspriceconsciousmarketsegments.

%ofYESept19visitation

NewZealand

Japan

HongKong

Singapore

Malaysia

Indonesia

Taiwan

Thailand

Korea

China

India

OtherAsia

USA

Canada

UK

Germany

Scandinavia

France

Italy

Netherlands

Switzerland

OtherEU

Other

Total

Arrivalnumbers

Recoveryrate

Hotels|Q12023

Figure4:RecoveryRatebySourceMarketYESept22

60%

50%

40%

30%

20%

10%

0%

Figure5:InternationalPassengerArrivals–Sept19vsSept22

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

80%70%60%50%40%30%20%10%

0%

54%

73%

65%64%65%

56%

44%

AdelaideBrisbane

2019

Darwin

GoldMelbournePerthSydney

Coast

RecoveryratetoYESept19

2022

Source:TRA,BITRE,CBREResearch

?2023CBRE,INC.

4

CBRERESEARCH

InternationalVisitation

Recoveryofinternationalarrivalstoacceleratethetourismindustryin2023

Overview

Internationalpassengerarrivalsarerecoveringacrossallmajorcapitalcitiesbutremainbelowpre-pandemiclevels.Infact,Australianinboundshort-termarrivals(thosecomingforlessthanayear)arestill~40%below2019levels,despiteinternationalbordershavingbeenopenforayear.Visitorstoseefriendsandrelativeshaverecoveredthemost,followedbyeducationarrivals.However,holidaytravelisstilllaggingandsittingaround60%ofwhatitwasin2019.

Figure4illustratestherecoveryrateofinternationalsourcemarketsintheYESept22.Singapore,Indiaand‘Other’Asiamarketsarerecoveringatthefastestrate,now40-50%ofwhatarrivalswereinYESept19.TraditionallystrongsourcesofdemandsuchastheUSAandtheUKhaverecoveredtoonly20%and27%ofpre-pandemicactivity,respectively.

Figure5illustratestherateofrecoverybydestinationmarketbasedoninternationalairlinepassengerarrivals.TheGoldCoastisthefastestrecoveringdestinationmarketwithinternationalvisitorsat73%oftheirarrivalratein2019.NewZealandwasthedominantsourcemarket.MajorgatewaymarketsofSydneyandMelbournefollowat65%oftheirpre-pandemicarrivalrate.DomesticdemanddominatedcitiessuchasBrisbane,AdelaideandDarwinarelaggingwithlowerrecoveryratesofinternationalarrivals.

ThereopeningofChina’sborderswillbekeytotherateatwhichourinternationaltourismeconomycontinuestorecover.PriortothepandemicintheYESept19,AustraliarecordedthehighestnumberofinternationalvisitorsfromChina(1.7millionvisitorsor16%oftotalvisitors).InthemostrecentYESept22thiswasdowntoamere67,000visitors,or3%ofinternationalvisitors.

China’srecentbanonforeignuniversityonlinecoursesanddegreesisanticipatedtospuraninfluxofstudentarrivalstoAustralia.Currently,Chinacomprisearound25%ofourinternationalstudentmarket.WithtotalstudentvisaarrivalsinDecemberonly5%shyof2019’srecordpace,thereopeningofChina'sborders,inadditiontothisrecentannouncementcouldseeahistorichighinstudentarrivalsbymid-yearenrolments.Associatedvisitingfriendsandrelativestravelhastraditionallyfollowedasastrongsourceofvisitationandultimatelydemandforthehotelssector.

Outlook

Acontinuedrecoveryofinternationalarrivalsisexpectedthroughout2023,withcoredriverssuchasthecompetitiveAUDand“safe”/bucketlistlocationstatusofAustralia.The40,000personliftintheAustralianmigrationcapwilldeliveramorediverseAustralia,furtherfuellingassociatedfriendsandrelativedemand.

Emergingsourcemarketswillbeafactorofinternationalvisitationin2023.ExamplesincludeIndiawhichhasincreasedfromacontributionof4%ofinternationalarrivalsinYESept19to9%inYESept22withsomeotherkeysourcemarketsyettorecover.

Slowingeconomiesintwoofourlargestsourcemarkets(UnitedKingdomandUnitedStates),however,maydampenthepotentialrecoveryrate.

Hotels|Q12023

Demand

Performanceindicatorsatornearpre-covidlevels

Figure6:KeyPerformanceMetrics-Australia

Australia

Dec22

Y-o-y

Indexrelativeto2019

Occupancy(OCC)

65%

38%

0.9

AverageDailyRate(ADR)

$228

24%

1.23

RevenuePerAvailableRoom(RevPar)

$149

71%

1.08

Overview

Pent-updemandandincreasedoperationalconfidencehelpedunderpinanextraordinarypaceofADRgrowthin2022.AsatDec22,

ADRsatat$228nationallyandoutperformedpre-pandemicratesacrossallmajormarkets.Nationally,occupancyratesarejustshyof

theirpre-pandemicrateat65%.TheGoldCoastandDarwinhavealreadyexceededpre-pandemicoccupancyrates.

RevPARhasalsoperformedremarkablywell,upon2019ratesinallmarketsexceptSydneyandMelbourne.ToDec22,theGoldCoast

recordedthestrongestresultat$189,or36%above2019.Thisreflectstheregion’srecoveryinbothdomesticandinternational

visitation.

Justcomparingthelast12-months,however,SydneyandMelbournerecordedthestrongesty-o-ygrowthratesacrossallthree

indicators,illustratingtherecoveryintheirkeycorporate/MICEtravelandinternationalarrivalsisgainingpace.

Outlook

CBREanticipateADRgrowthtomoderateover2023,althoughmostcitymarketsarestillexpectedtopostgainsasoperatorsmaintain

strongratepoliciesinfavourofreturningtopre-pandemicoccupancylevels.Occupancylevelsindomesticdemanddominatedcities

suchasBrisbane,PerthandAdelaideareexpectedtoedgeupwardsfromalreadystronglevels,whilemajorinternationalgateway

marketsofSydneyandMelbourneshouldcontinuetoseeoccupancygainsasinbounddemandrecovers.

Labourandutilityoperatingexpenseshaveincreasedsignificantlyandareplacingdownwardpressureonrevenuestreams.Despite

this,allmarketsareexpectedtooutperformpre-pandemicperformanceindicatorsbymid-2023.

?2023CBRE,INC.

5

CBRERESEARCH

Hotels|Q12023

6CBRERESEARCH?2023CBRE,INC.

Darwin

Dec22

Y-o-y

Relative

to2019

OCC

63%

13%

1.06

ADR

$219

27%

1.48

RevPar

$138

44%

1.63

Cairns

Dec22

Y-o-y

Relative

to2019

OCC

64%

32%

0.86

ADR

$215

28%

1.44

RevPar

$136

69%

1.18

Figure7:KeyPerformanceMetricsbyMajorMarket

Perth

Dec22

Y-o-y

Relative

to2019

OCC

67%

19%

0.94

ADR

$203

15%

1.23

RevPar

$137

37%

1.13

GoldCoast

Dec22

Y-o-y

Relativeto

2019

OCC

70%

38%

1.00

ADR

$270

23%

1.37

RevPar

$189

69%

1.36

Adelaide

Dec22

Y-o-y

Relative

to2019

OCC

71%

22%

0.90

ADR

$196

26%

1.26

RevPar

$139

54%

1.10

Melbourne*

Dec22

Y-o-y

Relativeto

2019

OCC

60%

65%

0.80

ADR

$216

39%

1.16

RevPar

$130

129%

0.87

Hobart

Dec22

Y-o-y

Relative

to2019

OCC

77%

19%

0.93

ADR

$218

26%

1.18

RevPar

$168

49%

1.08

*DataforSydney,MelbourneandBrisbaneincludesCityandMetroareas.

Source:STR,CBREResearch

Brisbane*

Dec22

Y-o-y

Relativeto

2019

OCC

69%

38%

0.96

ADR

$215

29%

1.36

RevPar

$147

78%

1.29

Sydney*

Dec22

Y-o-y

Relativeto

2019

OCC

64%

69%

0.82

ADR

$250

31%

1.13

RevPar

$161

121%

0.88

Canberra

Dec22

Y-o-y

Relativeto

2019

OCC

70%

62%

0.93

ADR

$205

20%

1.20

RevPar

$144

96%

1.10

No.ofRooms

Luxury

Hotels|Q12023

Figure8:SupplyForecastbyType-Australia

3,000

2,500

2,000

1,500

1,000

500

0

UpperUpscale

Upscale

2023

UpperMidscale

2024

MidscaleEconomy

Figure9:NewRoomsUnderConstructionandOpeningin2023and2024

207

206

577

662

3331

510

958

2019

Melbourne

Adelaide

SydneyBrisbaneGoldCoast

PerthCanberraHobart

?2023CBRE,INC.

Source:CBREResearch

7

CBRERESEARCH

Supply

Futuresupplypipelinemayplaceshorttermdownwardpressureonrecoveringhotelperformance

Overview

TheAustralianhotelmarket’sexpansionaryphaseissettopeakinthenext12months.NewhotelroomsupplytrackedbyCBREshows~8,400roomsunderconstructionacrossAustralia’smajorhotelmarketsandsettobedeliveredin2023and2024.Thisismorethandoublethenumberofroomswhichweredeliveredinthepasttwoyears.Itshouldbenotedthatmanyoftheseprojectswereanticipatedtoopenin2022buthavebeendelayedassupplychaindisruptionspushedbackprojecttimeframes.

ThehighqualitysupplyadditionswillseetheelevationofluxuryhotelstandardsinAustralia.Acombined62%ofnewroomsdeliveredwillbeluxuryorupperupscalestock.TherisingmiddleclassinAsiaandmorerecentlythepandemicensued‘staycationboom’areanticipatedtobekeydriversofdemandforpremiumhotelrooms.Fortunately,theluxurymarkethasbeenresilientthroughthepandemicandcontinuestodisplaystrengthinADRgrowth.

Mostofthenewsupply(3,300newroomsor40%oftotalnewstock)willlandinMelbourne.OverathirdofthenewroomswillbeluxurystockdeliveredviathenewRitzCarltonandShangri-Lahotels.Sydneywillreceiveamoremodestlevelofnewsupplyasthelong-awaitedWHotelatDarlingHarbouropensitsdoorswhiletheCapellawillalsoopeninMarchthisyear.IntotalSydneywillseearound2,000newroomsor25%oftotalnationalpipelinedstockby2024.Brisbane,AdelaideandPerthwillalsoseeanotablelevelofincreasedsupplyover2023and2024.

Outlook

CBREanticipatenewsupplyoverthenextfewyearswillbelargelylimitedtoprojectsalreadyunderconstruction.Followingthiswaveofadditions,higherdebtandconstructioncostsareanticipatedtosuppressdeveloperactivitybeinglargelylimitedtokeystrategicsitesusuallyhavingmixeduseappeal.

Thecontinuedrecoveryofinboundarrivalsshouldproviderelieftopressuresplacedonoccupancy,particularlyinmajorgatewaymarketsofSydneyandMelbourne.However,thenewwaveofsupplyisanticipatedtoplayaroleinmoderatingrateperformanceoverthenexttwoyears.Theopeningofseveralpremiumprojects(whicharesettoachieveanewluxurybenchmark)inSydney,MelbourneandtheGoldCoastwillelevateAverageDailyRatesinthisclass.Melbourneisconsideredthemarketmostatrisktoafalteringrecoveryduetothesheernumberofhotelroomscomingonboard.

Anemphasisonsustainabilityisexpectedtoprogressasamajorconcernfordevelopersandoperators.Treasuryhasassumedretailelectricitypricesincreasedbyanaverageof20%inlate2022,withafurther30%riseexpectedin2023-24.Corporatedemandforgreenofferingsthatalignwiththeirsocialresponsibilitygoalsisgainingtraction.DevelopersarebeingincentivisedtoachieveESGcertificationsviaGreenFinancingandgrants.

Relativetopeercountries,thenumberofAustralianhotelroomsremainsconservative,andweseegoodopportunitiesforfurtherdevelopmentfollowingthestablisationofmarketconditions.

TotalHotelSales(AU$million)

%change

NumberofHotelSales

50010

00

200020022004200620082010201220142016201820202022

TotalSalesVolume

Source:CBREHotelsTotalNumberofHotelsSold

Hotels|Q12023

Figure10:TotalHotelSalesVolumesandNumberofHotelsSold-Australia

Investment

ADRandRevParoutpacinginflation

Overview

3,00060

2,50050

2,00040

1,50030

Figure10illustratesdealvolumesabove$10milliontotaled$2.14billionin2022over53transactions,up15%fromthepreviousyear.

Thisisthemostactiveyearbynumberandsecondmostactiveyearbydollarvalueonrecord.Theaveragehoteltransactionprice

hasdecreasedfromAUD$42MtoAUD$41M.Thissitsbelowthelong-termaverageofAUD$56Movertheprevioustenyearsto

2019.In2022,theinitialweightedyieldhassoftenedto4.07%asaresultofacombinationofrecoveringoccupancieswithdemand

insomemarketsabovepre-pandemiclevels,strongADRgrowth,andanincreasinginterestrateenvironment.However,this

softeninghasbeenagainstthebackdropofhistoricallylowweightedinitialyieldsreflectingnotonlytheunprecedented-lowcash

rateof0.1%,butalsotheseverelydepressedincomefromhotelswhichoccurredduringthepandemic-affectedperiod.

1,00020

Notabletransactionsin2022include:

-TheHiltonSydneywhichsoldforareportedpricecircaAUD$530M

-SpicersRetreatsPortfoliosoldforareportedAUD$130Macross110regionalluxuryrooms

-RydgesSydneyHarbourpurchasedforareportedAUD$101M

-CrownePlaza,SurfersParadiseforareportedAUD$96M

-TheRydgesNorthSydneypurchasedforareportedAUD$75M

Figure11:AnnualPercentageChangeADRandRevParvs.Inflation

-PeppersKingsSquare,PerthforareportedAUD$28.8M

60%

40%

20%

Transactionactivityin2023hasstartedstrongwiththerecord-breakingsaleofAustralia’sfirstWaldorfAstoriabyHilton.Fiveight

acquiredthehotelfromLendLeaseanditsjointventurepartnershipwithMitsubishiEstateAsiaandrepresentsthelargestsingle

assethotelsaleonrecord.The220roomluxuryhotelisbeingdevelopedatCircularQuayandduetoopeninlate2026.

Figure8.TheremarkableperformanceinADRandRevParover2022hasseenannualgrowthsubstantiallyoutpacingrisinginflation.

Historicallythesemetricshavebeenmorecloselycorrelated.Theuniquelyshortleaseperiods(measuredindaysratherthanyears)

andimmediacyofincomehasseenhotelassetsacknowledgedasahedgeagainstinflation.Luxuryhotelshavethemostpromiseas

inflationhedgesduetotheirlessprice-sensitiveclientele.Thisassetclasswilldominatenewsupplyover2023and2024.

0%

Outlook

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

Dec-18

Dec-19

Dec-20

Dec-21

Dec-22

-20%

-40%

-60%

CPIRevParADR

Highinflationandincreasedinterestrateshaveemergedasamajorconcernininvestmentmarkets,placingupwardpressureon

yieldsandIRRexpectations.Weanticipatefurthersofteningofinitialweightedyieldsforhotelpropertieswhichreflectsgrowing

propertyincomefollowingthepost-pandemicrecovery,aswellasthealready325bpsofcashrateincreases(asat8February2023),

withpotentialforfurtherincreasestotamestubbornlyhighinflation.

Anexpectedstabilisingofconditionsastheyearunfoldsshouldseecapitalmarketsbenefitfromgreaterinvestorcertainty.There

remainsasignificantlevelofequitycapitalonthesidelineswaitingtobedeployed.Improvingtourismdemandfundamentalsand

impressiveperformanceindictorsactingasaninflationhedgearelikelytocushionanyimpactofhighercredit-fundingcosts.

?2023CBRE,INC.

8

Source:STR,RCA,ABS,CBREResearch

CBRERESEARCH

Hotels|Q12023

Arrivals

SydneyOverview

TRAreportsintheYESept22therewere344,000internationalvisitorsandalmost4milliondomesticvisitorstoHotel,Motel,ServicedApartmentandGuestHouseaccommodation(HRMSG)inSydney.Domesticvisitorsrepresented92%ofthetotalvisitors(priortothepandemic,thiswasaround75%).WhilsttotalvisitationtoSydneyremains~40%belowpre-pandemiclevels,itisinternationalarrivalsthataremostdepressedat83%belowpre-pandemicrates.Averagelengthofstayremainselevatedduetoresidualmandatoryquarantineperiodscapturedintheannualdataset.ThestrongestsourcesofdomesticvisitationwerefromVicandNSWwithalmosthalfofvisitationdrivenbybusinesstravel.Forinternationalarrivals,itwastheUSAandNZ.41%ofinternationalarrivalswerehereforholidaypurposes,followedby31%forbusinesstravel.AccordingtotheBureauofInfrastructureandTransportResearchEconomics(BITRE),intheYESept22,airlinetraveltoSydneyoutpacedallotherstatescomprising20%oftotaldomesticand45%oftotalinternationalpassengeraircraftmovements.

Demand

TheSydneyhotelsectorhasexperiencedoneofthestrongesty-o-ygrowthprofilesacrossAustraliadrivenbyareturntocorporatetravelandinterstateholidaymakers.Overthelastyear,occupancygrowthoutpacedallmajortourismregions,up69%to64%.Thisisthehighestresultsincethepandemicbutremains18%belowYEDec19results.TheAverageDailyRatehasnowoutpacedthepre-pandemicrateat$250andwasup31%overtheyear.Asaresult,RevenuePerAvailableRoom(RevPar)hasrecordedstronggrowthto$161,howeverstill12%downonpre-pandemicperformance.SecondtoMelbourne,Sydneyhasrecordedthemostsignificanty-o-ygrowthrateinADRandRevPar.

Supply

ThereweretwomajorCBDhotelopeningsandonesuburbanopeninginSydneyduring2022.Thesewere;MGallerybySofiteldelivering121upperupscalerooms,AceHoteldelivering264uppermidscaleroomsandTravelodgeHurstvillewhichopened124rooms.SecondtoMelbourne,Sydneyhasthelargestpipelineofpremiumstockcurrentlyunderconstructionandduetoopenoverthenexttwoyears.NotableprojectsincludeCitadinesWalker,Capella,Whoteland25hourstotaling~1200rooms.Thisrepresents2.6%oftotalGreaterSydneyhotelroominventory.

Outlook

AsAustralia’smajorinternationalgatewaymarket,Sydneywillbeaprimarybeneficiaryofrecoveringinternationalarrivals,whichwillhelppushoccupancylevelshigher.AverageDailyRatesareforecasttoachievemoremodestgainsin2023followingrecordbreakinggrowthoverthepasttwoyears.

9CBRERESEARCH?2023CBRE,INC.

Hotels|Q12023

?2023CBRE,INC.

10

CBRERESEARCH

Source:TRA,CBREResearch

Figure12:SydneyDomesticandInternationalMajorSourceMarketsYESept22Figure13:KeyStatisticsTablefortheSydneyHRMSGVisitorMarketYESept22

1%

5%

6%

22%51%

42%

4%

3%

4%

4%

16%

4%

7%

14%

8%

8%9%

Vic

NSW

Qld

SA

ACT

WA

Tas

USA

NZ

UK

Singapore

India

Other

Canada

OtherAsia

Korea

China

SydneyTourismMarket

HRMSGAccommodationYESeptember2022

DOMESTIC

%changefrom

2019

INTERNATIONAL

%changefrom

2019

TOTAL

%changefrom

2019

TotalVisitors

3.99million

-28.2%

0.344million

-83.1%

4.33million

-42.9%

TotalVisitorNights

9.66million

-19.1%

5.514million

-37.3%

15.17million

-26.8%

AverageLengthofStay

2.4nights

12.6%

16.0nights

271.0%

LargestSourceMarket

Vic

USA

?2023CBRE,INC.

11

CBRERESEARCH

Source:STR,BITRE,CBREResearch*STRDataincludesCityandMetroAreas

Dec-17

Mar-18

Jun-18

Sep-18

Dec-18

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

MGallerybySofitelPorterHouse

203CastlereaghStreet

CBD

UpperUpscale

121

2022

AceHotel

47WentworthAvenue

CBD

UpperMidscale

264

2022

TravelodgeHurstville

6/8CrossStreet

Hurstville

Midscale

124

2022

CollectionbyTFESurryHills2

38BaptistStreetRedfernLuxury1022026

RecentlyOpened

Property

Date

Address

Suburb

Scale

Rooms

Figure14:SydneyHotelSupplyPipelineRecentlyOpenedandUnderConstruction

HotelSupply

UnderConstruction

CitadinesNorthSydney

88WalkerStreet

CBD

Upscale

252

2023

CapellaSydney

23