It was great to be a part of HICAP ANZ and hear that the Hotel sector is well on the way to recovery, outstripping projections.  The past couple of years has forced the sector to innovate and act quickly, diversifying offerings and income streams associated with Hotel properties.

I was fortunate to be part of the ESG panel discussion leading into the conference, which was organised by Ashurst Lawyers.  The other panellists were Gus Moors (head of hotels at Colliers), Steve Whittington, (partner at Ashurst Lawyers who specialises in tax) and Campbell Johnston (partner at Ashurst Lawyers who advises on financing arrangements including hotel financing).  We discussed the status of ESG, future impacts, opportunities, finance and tax implications of investing in ESG in the sector.

The consensus seemed to be that the sector as a whole was a little behind, there are also plenty of leaders in the Hotel sector, but accelerated take-up of the ESG challenge is needed more broadly in the sector.

Some of our highlights from the conference :

• Occupancy continues on its path back to 2019 levels with all major markets above 83% of 2019 levels (North America, Central America, South America, Australia, Europe, Africa and Middle East).
• Recovery to 2019 levels projected to occur in mid to late 2023.
• Rate growth has been strong.
• More than 50% of global markets were at peak RevPAR (Revenue per available room) compared to a 2019 baseline.
• Occupancy across APAC varies due to slow changes to Government setting in some countries.
• Higher average daily rate (ADR) is offsetting the reduced occupancy.
• Labour shortages and inflation are driving a higher ADR.
• ADR growth is strongest in the regions.
• Winter demand in Australia is 90% of 2019-pre Covid rates.
• Covid concerns have dropped to 4^th on the list of travel barriers, inflationary costs are taking over.
• Brisbane leads the Australian recovery, Queenstown leads NZ.
• New supply projections have fallen away by approx. 20%.
• Hotel investment is strong but margins are currently compressed.

The fastest RBA tightening cycle is anticipated to control inflation with a 2-3 year cycle and then we’ll see an easing of rates.

Please contact Ian for any assistance or advice relating to Sustainability, Climate & ESG, or the rest of our team listed below regarding our other services.

MELBOURNE
Rob Howells, Managing Director | 0437 649 082 | rhowells@napierblakeley.com
Peter Frith, Director | 0437 649 082 | pfrith@napierblakeley.com
Craig Smith, Director | 0407 371 664 | csmith@napierblakeley.com
Ian Gardner, Director | 0488 225 569 | igardner@napierblakeley.com
John Atkins, Director | 0456 644 052 | jatkins@napierblakeley.com

SYDNEY
Alastair Walker, Director | 0419 503 289 | awalker@napierblakeley.com
Peter Hammond, Director | 0419 980 901 | phammond@napierblakeley.com
Michael Ross, National Head of Tax | 0403 841 175 | mross@napierblakeley.com
Stephen Cooke, Associate Director | 0409 228 552 | scooke@napierblakeley.com

BRISBANE
Paul Cosker, Director | 0434 400 107 | pcosker@napierblakeley.com
Adam Greene, Associate Director | 0409 724 395 | agreene@napierblakeley.com
Gavin Peach, Associate Director | 0412 225 781 | gpeach@napierblakeley.com
KY Pih, Associate | 0408 933 660 | kpih@napierblakeley.com

PERTH
Graham Rigby, Associate Director | 0419 847 998 | grigby@napierblakeley.com

ADELAIDE
Sam Grindley, Senior Associate | 0460 032 142 | sgrindley@napierblakeley.com