The outlook for Australasia hotels for 2022-2023 is positive as the return of travel brings confidence and continued investment to the market. Here, General Counsel and Commercial Director of Minor Hotel Group, Lachlan Hoswell, shares the company’s development prospects.
As we look to 2023, there is much to be excited about the development pipeline of Minor Hotel Group and the industry at large.
On the international investment front, Australia will continue to be a favorite location, with hotels in particular being a sought after asset for overseas investment. On the home front, domestic developer activity and market investment are strong and, provided returns meet investor needs, there is cash available for feasible projects and hotel acquisitions. efficient. We expect to see new hotel announcements over the next 12 months.
Unsurprisingly, uncertainty around new construction costs will continue to impact feasibility, however, we expect the supply chain challenges affecting the construction industry to ease as the industry is returning to a new normal after the peak of the COVID-19 pandemic.
For our brands, we see a myriad of growth opportunities through a strategic combination of franchises, hotel management agreements and leases, as well as investing in projects alongside developers, with both popular capitals, urban centers and regional locations currently under consideration.
In light of robust regional market activity in Australia, we are targeting franchise opportunities to grow our Oaks brand, and we look forward to sharing Oaks’ fully serviced apartment model and ” home away from home” with business and leisure travelers in new locations across the country.
Construction is set to begin on NH Collection in central Sydney, which will be the brand’s first foray into the Australian market. We are excited to bring this strong global brand to market and expand it further across Australia.
This column was featured in HM’s 2022-2023 Development Outlook in the magazine’s June edition. Learn more here.