November 18, 2022

Australian hotels are well positioned for 2023 and make for good credit


Spend on business travel compared to pre-covid period

Source: Tourism Research Australia

While international arrivals remain lower than 2019 levels, businesses and events are leading the return to capital city travel with improved hotel occupancy and daily rates. The return of foreign travellers in 2023 is expected to enhance the already robust activity.

We currently view completed hotel stock as an attractive investment sector since anecdotal evidence suggests traditional banks have been unable to fill borrowers’ capital requirements, due to their credit assessments often focusing more on historic market conditions (past 12-24 months) than being forward-looking.

We are currently financing one operating hotel, Porter House (Sydney) and financing the construction of two new hotels, The Melbourne Place (Melbourne) and Hotel Indigo (Auckland). We continue to look for one or two new opportunities to finance hotels that will benefit from the resurgence of travel and event activity.

Latest Insights