Hello - I see that the Palazzo Versace Hotel on the Gold Coast is up for sale by its owner Sunland Group. It appears that the brand Palazzo Versace is holding firm with occupancy rates of 80% (what an achievement and congratulations to the management). I would imagine it is a highly competitive time in the luxury end of hotels at the moment and possibly some discounting going on to achieve these occupancy levels. This sale follows moves also by Mirvac to sell its hotels late last year.
If these decisions are being made - executives must be viewing this not as a short term shift in market conditions but more likely a medium to longer term view. As many will be aware the reasoning for these challenging times in this sector being the unusual high Australian dollar which still above parity with the US Dollar making other regions / more attractive for tourists. Thus resulting in fewer visitors both internationally and domestically for Australian hotels. Are there other factors as play? Brand Australia not right?
Is this the beginning of the end for the luxury branded hotel model within Australia? Is the only growth that we will see in the short to medium term in the cheaper end of the market. Is cheaper building options available which subsequently generate high returns for these operators? Time will tell.
A nice place for a hotel possibly?
The issue of heritage appears to be attracting interest. I will write more on this tomorrow. Have a great day.
Josh
If these decisions are being made - executives must be viewing this not as a short term shift in market conditions but more likely a medium to longer term view. As many will be aware the reasoning for these challenging times in this sector being the unusual high Australian dollar which still above parity with the US Dollar making other regions / more attractive for tourists. Thus resulting in fewer visitors both internationally and domestically for Australian hotels. Are there other factors as play? Brand Australia not right?
Is this the beginning of the end for the luxury branded hotel model within Australia? Is the only growth that we will see in the short to medium term in the cheaper end of the market. Is cheaper building options available which subsequently generate high returns for these operators? Time will tell.
A nice place for a hotel possibly?
The issue of heritage appears to be attracting interest. I will write more on this tomorrow. Have a great day.
Josh
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