MICHAEL MORET-LALLI - DIRECTOR of ACQUISTIONS
Welcome to ADVANCE, Mantra Group’s quarterly communique to our hotel investment community colleagues. In this edition we are delighted to announce a landmark transaction that will add almost 1,000 hotel rooms to Mantra Group’s portfolio and we also share the company’s results for the first half of FY2015.
By 30 June 2015, Mantra Group will have opened 13 new properties for the financial year, representing a record level of activity for our company. For the broader hotel investment environment, activity has been equally buoyant, with CBRE Hotels reporting that for the third year in a row, Australian hotel sales exceeded a combined value of $2 billion (2014 calendar year), with Asian investors said to account for 70% of the transaction volume.
To give Australia’s hotel sales volume some global perspective, JLL Research recently reported that worldwide hotel sales reached almost $60 billion in 2014, a 10% surge on the previous year, which JLL attributed to the activity of cashed up private equity funds under pressure to invest funds.
This increasingly competitive hotel investment market requires Mantra Group to remain focussed on driving the very best possible operating outcomes at the 116 hotels that carry our brands. In that regard, the operating environment continues to be strong across Australia’s major hotel markets, with Savills Research Australia reporting average RevPAR growth of 4.1% across the country in the year to December 2014.
Of all Australian capital city markets, Savills stated that only Canberra and Perth recorded a decline in average rooms rates (circa 4%) in 2014, while Cairns and the Gold Coast - where Mantra Group enjoys a dominant presence - were Australia’s best performers for the year, recording 10.3% and 9.6% RevPAR growth respectively.