Over the past five years, 2,695 new hotel rooms have been opened in Perth to make up for an undersupply in the market. Another 1,700 rooms are under construction, plus another 896 rooms are committed. This will provide around 5,291 additional rooms in total built within in a decade… and there are more that will happen but are yet to be formally announced.
This investment has also introduced around 1,000 rooms at the premium end of the market, including the Como, Crown Towers and The Westin. That’s not including the Ritz-Carlton, which is under construction at Elizabeth Quay.
MacroPlan has worked on many of these projects for clients, helping analyse the market needs, success factors and how to optimise the location and asset value. In some cases, it has involved the precinct planning and activating the surrounding area with an appropriate retail and activity mix. Hotels also bring an economic activation to an area and this is particularly important outside of the CBD which may otherwise have limited amenity.
Perth CBD and Fremantle have been the focal point for most of the activity, but some developments are in strategic, near-CBD locations (such as Subiaco, Stirling City Centre) or between the CBD and Perth Airport.
From the number of enquiries received at MacroPlan there is a continued appetite for more hotel projects, but they are getting exponentially harder to justify, given the existing development activity. Getting the right mix of market, price point and site selection has always been important, but now critical.
The most successful offerings are integrated mixed use precinct developments that become the focus of activity for business, tourism and retail activities.
MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities. Contact Stuart McKnight, General Manager – Western Australia, today to discuss your property research requirements.