Skip to main content Skip to footer

New turnkey hotels dominate sales activity

Colliers International Australia releases annual Hotel Sales research and analysis

New hotel development deals dominated the market in 2017, amounting to $394 million – almost a quarter of the total sales volume.

Colliers International Australia released its Hotel Sales 2017 research and analysis report today which also found that hotel sales volumes eased, following three of the strongest years on record.

Colliers International Australia Head of Hotels Gus Moors said offshore capital continued to dominate, but with a a notable broadening of the capital base, with purchasers from Japan, Singapore, USA, Hong Kong, Vietnam, Germany and the UAE.

“2018 is likely to see similar patterns to 2017, with limited opportunities in Sydney and Melbourne, as owners in those markets continue to enjoy strong cashflow,” Mr Moors said.

“More activity is likely to occur in the metropolitan markets and other State capitals, as owners capitalise on limited inventory in the market.

“The robust pipeline of new hotels should see activity increase again over the medium term.”

For the year to December 2017, Colliers International Australia analysed $2.02 billion of hotels that were transacted throughout Australia, culminating 47 sales, said Colliers International’s National Director Hotels Neil Scanlan.

“Whilst moderating, volumes remain well above the long-term average of $1.25 billion,” Mr Scanlan said.

The largest transaction of the year was in Melbourne, with the $230 million purchase of the Hilton Melbourne South Wharf.

 The limited level of existing inventory on offer is pushing investors into the development and turnkey space. Key development transactions included the W Melbourne, Four Points by Sheraton Central Park Sydney and Quest Penrith.


Related Experts

Matthew Stagg

Director | Melbourne City Sales

Investment Services

Melbourne CBD

Matt Stagg has specialised in the sale of Melbourne Central Business District (CBD) and City Fringe commercial property since 2000. He has an extensive track record selling office and retail investments, development sites and commercial car parks. 

​Matt has an established client base throughout Melbourne and Australia from a variety of sectors including institutional and private investors, family offices, corporates, developers, banks, receivers and government.

He has also cultivated a network of international clients from China and South East Asia. This has directly resulted in several record transactions throughout the CBD and City Fringe to major offshore investors and developers entering the Melbourne market.

​Please contact Matt and the Melbourne City Sales Team should you be considering selling or buying a high quality commercial property in the City of Melbourne.​

View Expert

Oliver Hay

National Director | Melbourne City Sales

Investment Services

Melbourne CBD

Oliver is an experienced National Director with a demonstrated history of working in the Real Estate industry. Skilled in negotiation, customer service and real estate transactions, Oliver is a strong operating professional who has received numerous accolades throughout his career. Oliver’s strong client relationships are proof of his success and his drive to achieve the best possible outcome for all clients is unmatched. With a focus in the City of Melbourne, Oliver has transacted some of Melbourne’s largest and most significant deals and continues to play a major role in breaking market records.

View Expert

Daniel Wolman

National Director | Melbourne City Sales

Investment Services

Melbourne CBD

Daniel is Head of Investment Services Victoria with a national role of growing the Australian Investment Services business. Transactionally, Daniel’s specialisation is in the Middle Market assets class ($20-$200mil) throughout the City of Melbourne.

Daniel joined Colliers in 2010 and quickly claimed market share of the CBD. He focuses primarily on commercial investments and value-add opportunities with a laser focus on office, retail and development sites, for which he and his team are market leaders.

Daniel regularly engages with a diverse range of clients from various sectors and consistently strives to surpass client expectation. He manages negotiations on behalf of local, national and international clients and has been involved in billions of dollars’ worth of transactions. 

Since commencing the leadership of his team in 2010, Daniel has managed to guide the Melbourne City Sales team to success year after year, continuing to be a leader in his market and achieve record transactions no other agency has managed to do. In 2021, Daniel has taken responsibility for the entire Victoria Investment Services business.

Throughout these years, Daniel has dedicated his time to many enterprising initiatives including Middle Markets, where Daniel has driven the Victorian and National business to focus on key investments predominantly in the office asset class, and Premium Investments which he has also lead from a National approach, listing and transacting assets underpinned by premium tenants.

Daniel has maintained strong relationships with clients due to his strong and transparent communication, and this is significantly prominent in his extensive track record.

View Expert