In HM‘s 2024-2025 Hotel Development Outlook, IHG Hotels and Resorts Director of Development – Australasia and Pacific, Cameron Burke, discusses the key trends on his radar.
Hotels are proving to be an incredibly resilient asset class in the face of adverse macroeconomic conditions. So much so that the prevailing classification of hotels as an alternative real estate investment is now being challenged given comparatively favourable performance against traditional core assets like retail and commercial offices.
New hotel developments continue to rely on broader mixed-use components to assist with feasibility – with blends of residential, retail, hospitality and commercial offices being popular in the creation of destination precincts which are invariably anchored by the relevant hotel.
Over the next 12-18 months I expect this trend to continue, not only as a fundamental debt servicing requirement, but also more strategically as planning approvals are inclined towards promoting lively communal activations that enhance adjacent locale. Hotel positioning is also becoming progressively aligned to the luxury and lifestyle segment, which appeals to developer feasibility and is reflective of contemporary guest travel preferences.
The confluence of these trends manifested with Kimpton in Brisbane’s Teneriffe, which was signed and announced with Kokoda Property at AHICE 2024. This 155-key luxury lifestyle hotel will form part of a vibrant precinct on the banks of the Brisbane River, in the heart of one of the city’s trendiest suburbs. Boasting waterfront access and an enticing infinity pool atop Brisbane’s famed riverwalk, the Kimpton is set to become a locally loved destination for the aspirational and socially inclined when it opens in 2028.
Looking ahead, South East Queensland will continue to attract the interest of developers, with the government’s strong investment in public infrastructure and focus towards the 2032 Olympics creating an array of new hotel opportunities.
We were pleased to recently announce the signing of the 160-key Holiday Inn and Suites Caloundra, securing the presence of the world’s largest brand family in this prime leisure destination on the Sunshine Coast. Balancing a premier location with outstanding aspect in the heart of Caloundra, this hotel will address the current shortage of quality accommodation product on the Sunshine Coast.
We’re excited to have several other key hotel signings slated for the next few months.