Canberra’s funky hotels have made the accommodation sector one of the best performing in the country, according to Ray White Commercial.
With the nation’s capital recently emerging as a tourist hotspot, occupancy is consistent and average daily room rates are on the rise.
Canberra’s exceptionally designed hotels have been attributed as a reason for this, with the territory setting a benchmark for unique hotel development offerings.
Ray White Hotels director of investment sales and advisory, Mark Bullock said that tourists are taking notice of the funky aesthetics in Canberra’s hotels.
“You’re not getting your traditional cookie-cutter hotel – you’re getting something new and exciting,” said Bullock.
“Local developers are really having a go by developing new and exciting brands, food and beverage concepts, whilst also offering world-class meeting and event spaces.”
Hotels that have been praised include the East Hotel, Burbury Hotel, Aria Hotel and Hotel Hotel amongst others.
Little National in Canberra won a national property award in May. Photo: Little National
Also the Little National Hotel and Vibe Hotel Canberra won national property awards in May and were praised for their innovative designs.
Bullock said it’s not only tourists taking notice, with industry insiders also keen to find out more.
“If a hotelier, a broker or a consultant’s been in town in the last couple of years, they’ve taken the time to see what the fuss is about,” he said.
“Most people walk away pleasantly surprised at what these developers have been able to deliver.”
- Related: How to keep your indoor plants vibrant in Canberra’s climate
- Related: Canberra is leading Australia’s hotel market: CBRE report
- Related: Canberra hotels among national Property Council award finalists
While the ACT accommodation market has been an outstanding performer over the past 12 months the high reliance on the public sector sees occupancy drop in December- January.
“The December-January period are the historical lows in occupancy, recorded as low as 62.8 per cent in January 2016, given the high reliance on the public sector,” said Bullock.
“The effect of no parliamentary sittings during these months is obvious to the accommodation market.”
Ray White’s head of research, Vanessa Rader said the four-star hotel sector is leading the accommodation market with a growth of 23.3 per cent over the past three years. Of this, 13 per cent is a return on capital.
“This level of return exceeds a number of other high-profile and value assets such as CBD offices (12.7 per cent), super-major regional shopping centres (9.8 per cent) and industrial distribution facilities (10.7 per cent), which are also in high demand from both domestic and offshore institutional investors,” she said.