A prominent eastern gateway site to Bondi Junction could soon host a new eight-storey apartment project combining market and affordable housing, under new plans lodged with Waverley Council.

The proposal covers a 1,631 sqm amalgamated site across five properties at 2–6 Bondi Road and 75–77 Old South Head Road, including the corner of Ben Eden Street.&nbsp;

According to the Design Verification Statement by <a href="https://www.apartments.com.au/architects/tony-owen-partners">Tony Owen Partners</a>, the development will deliver a total of 56 apartments, incorporating 10 affordable dwellings. The project takes advantage of the NSW Government’s Housing SEPP, which provides a 30 per cent uplift in height and floor space ratio in exchange for the inclusion of affordable housing.

<img alt="Bondi Road, Bondi" data-entity-type="file" data-entity-uuid="64226782-681d-430f-a08b-31d007ba40e0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bondi%20Road%20Bondi%20site.png?VersionId=gCt8XpeE4jXEoao0FnG.Ij9mUr73CB68" />

The mix of apartments spans one-, two-, and three-bedroom configurations, with a layout designed to optimise amenity and environmental performance.&nbsp;88.5 per cent of units achieve natural cross ventilation, Tony Owen Partners notes in the statement, attributing the result to the site’s configuration and a high proportion of corner apartments.

The design also responds to the site’s transitional context, on the periphery of the high-rise Bondi Junction commercial core and adjoining the lower-scale Bellevue Hill precinct.&nbsp;

“The siting, scale, bulk, and massing of the proposed development is consistent with that anticipated for the area,” the statement reads, with the building’s height capped at 28.6 metres in line with the LEP controls including bonuses.

<img alt="Bondi Road building" data-entity-type="file" data-entity-uuid="083fb63f-8a64-4c21-9c09-83e379f1cedd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bondi%20bldg.png?VersionId=aQMby6eh5kCepC_rlXkobUpV0M6IsYns" />

Located near the intersection of Bondi Road, Oxford Street, and Old South Head Road, the site occupies a pivotal position at the entry to Bondi Junction from the east. The site is currently occupied by four detached two-storey dwellings.

Bondi Junction seldom sees new apartment development. Stargate is currently developing <a href="https://www.apartments.com.au/new-apartments/the-centennial-collection-east-sydney-2-nelson-street-bondi-junction-nsw-2022">The Centennial Collection</a>, on the edge of Woollahra and Centennial Park, and are soon to launch <a href="https://www.apartments.com.au/new-apartments/signature-by-stargate-362-384-oxford-street-bondi-junction-nsw-2022">Signature by Stargate</a>, just down Oxford Street.

Urban Editorial

First look: Eight-storey apartment block pitched for key Bondi Junction gateway site

Boutique developer SIERA has recently completed PIPIS, a rare, absolute beachfront address that embodies the best of the southern Gold Coast.

PIPIS was delivered in under three years, an achievement that reflects SIERA’s considered yet efficient approach. After securing the prime Golden Four Drive site in late 2022, the team refined the approved design and delivered a boutique collection of 19 residences, including two double-storey penthouses, homes that demonstrate how precision, craftsmanship and a disciplined approach to design can make the most of a rare beachfront location.

[smartcode_project:default project_id=138311 project_image_fid=353604]

With construction now complete and residents settled in, the final sub-penthouse offers a rare opportunity to join an address that captures the calm and quality of true beachfront living on the southern Gold Coast.

Beyond its location, PIPIS distinguishes itself through the depth of its amenity and the way those spaces are considered. Every element, from the magnesium lap pool and tropical landscaping to the dedicated dog wash and reformer Pilates equipment, has been planned with the residents’ day-to-day lives in mind. It’s not just what’s included, but how thoughtfully it’s executed.

[smartcode_project:default project_id=138311 project_image_fid=353605]

What truly sets PIPIS apart is the construction quality and craftsmanship, a hallmark of SIERA projects since its inception in 2014.

“Design and construction quality is the absolute first priority at SIERA,” says Managing Director Brent Thompson. “It’s the most important aspect of any project we do, before speed of delivery, before sales. If you can guarantee build quality, then the rest will fall into place.”

Thompson says the company’s reputation has been built on trust and lived experience rather than marketing promises. “What we want at SIERA is for future purchasers to speak to our past purchasers and ask them what it’s like living in a SIERA building. If we haven’t delivered on what we’ve promised previously, we won’t be successful in the future.”

[smartcode_project:default project_id=138311 project_image_fid=6572]

With a background in construction, Thompson’s hands-on approach is a key part of SIERA’s success. “If buyers are putting faith in the SIERA brand, it’s my responsibility that we deliver absolute quality and the highest level of service.”&nbsp;

But for Thompson and SIERA, liveability goes far beyond build quality. Every project begins with a clear understanding of who it’s being designed for. “Before we commit to buying a piece of land to develop, we consider who will reside there and what will matter to them,” Thompson says.

Every residence at PIPIS has been designed to open to the breeze, the natural light, and the sound of the ocean. Broad balconies extend living spaces outward, while the use of robust, tactile materials ensures each home feels grounded and easy to live in. It’s a design shaped by Queensland’s climate and a genuine understanding of how people want to live by the beach.

[smartcode_project:default project_id=138311 project_image_fid=353606]

Location was central to the vision for PIPIS. It was designed for people who know what makes the southern Gold Coast special, those who live here year-round and those who return whenever they can. “Our buyers all share the same mindset,” says Thompson. “They want to be close to Kirra, Palm Beach and Coolangatta, yet still have privacy and calm. They prefer smaller, well-crafted buildings to big towers, and they want to walk straight onto the beach. PIPIS was built around that sense of ease and familiarity.”’

With construction complete and residents now settled in, the final sub-penthouse offers a rare chance to join an address that defines absolute beachfront living on the southern Gold Coast, a building conceived with care, built with precision, and unlikely to be repeated anytime soon.

[smartcode_project_cta:default project_id=138311]

Joel Robinson

Quality assured: The sole focus driving SIERA’s Gold Coast apartment pipeline as PIPIS in Bilinga completes

When apartments are the minority in a suburb, their success often hinges on what’s available without needing a car.&nbsp;

Raya by <a href="https://www.urban.com.au/developers/core-developments">Core Developments</a> arrives at a time when apartment options in Gungahlin remain limited, and demand for well-located, walkable housing continues to grow.

Located on Ernest Cavanagh Street, <a href="https://www.urban.com.au/new-apartments/raya-gungahlin-ernest-cavanagh-street-gungahlin-act-2912">Raya</a> places residents within the most active part of Gungahlin.&nbsp;

Retail, dining, education and transport are all within close walking distance, with many of the suburb’s primary amenities located within a 150 to 300 metre radius.

“Raya has got the best to both worlds. A great looking building, that will be built impeccably. It will stand the test of time, and add enduring value for any buyer. And, this is quite simply the best residential location in <a href="https://www.urban.com.au/developments/gungahlin-act-2912">Gungahlin</a> with immediate access to every amenity Gungahlin has on offer. You could quite easily sell your car if you move here,” James Herbert of <a href="https://www.urban.com.au/project-marketer/lj-hooker-project-marketing-act-0">LJ Hooker projects</a> said.

<img alt="Raya, Gungahlin" data-entity-type="file" data-entity-uuid="266b0b21-f56b-4d93-9039-e9e17a2c4b71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/e450173a099aaad8055757c92e45efb1-1600x0-c-default.png?VersionId=4X06Ja6e9pQTjOo4QKBEfKiRP1T7hR68" />

Marketplace Gungahlin - the suburb’s main shopping precinct - is less than a two-minute walk from the site. It offers access to major retailers including Woolworths, Aldi, BIG W and Kmart, along with a variety of services, medical centres, and fitness providers.

Dining options in the surrounding blocks are diverse and expanding. Longstanding local favourites like Le Bon Mélange and EQ Café are now joined by new arrivals such as Ikigai Ramen, The Usual and Sunday Canberra, reflecting Gungahlin’s emerging reputation as one of Canberra’s up-and-coming café and dining destinations.

While apartment living often calls for easy access to open space, Raya benefits from its proximity to several parks and recreational facilities. Yerrabi Pond District Park is just minutes away and offers walking trails, playgrounds, and picnic spots, as well as outdoor fitness equipment and a skate park.&nbsp;

Gungahlin Enclosed Oval and the Gungahlin Leisure Centre are also nearby, supporting a range of community and sports activities.

<img alt="Raya, Gungahlin" data-entity-type="file" data-entity-uuid="6b2ebc21-8257-4144-ad11-3970a73d5125" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/RAYA_2Bed-Living_nochair_3000-2000x0-c-default_0.png?VersionId=BJUJN_k6tZL9p9Lzq13m9OzyyKPstKQY" />

Public transport is a core strength of the location. The Gungahlin Place Light Rail stop, one of the network’s terminal stations, is located less than 100 metres from the development, providing direct access to Canberra’s inner north and CBD. Several local bus routes also operate from the same area, making car-free commuting a realistic option.

The immediate area also includes a number of schools catering to all levels, from early years through to college. Franklin School is within walking distance, while Gungahlin College and Burgmann Anglican School are both around two kilometres away. Childcare centres, health services and veterinary clinics are all established in the precinct.

Medical clinics, pharmacies, allied health services and a public walk-in centre are all available within the town centre footprint.

<img alt="Raya, Gungahlin" data-entity-type="file" data-entity-uuid="7b35a7c5-dbee-491a-8ec4-ee41c06505b5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Raya_INT03_Rooftop_FP_3000-1600x0-c-default_0.png?VersionId=mTcDlZi3gAUq_spekHAWlWd5kvCbTiH3" />

Raya comprises 166 one, two and three-bedroom apartments, each with a private outdoor area. Balconies start at eight sqm, with some larger configurations offering upwards of 50 sqm of external space - a feature that aligns with the nearby parklands and active public spaces.

Buyers can secure an apartment now with a five per cent deposit, ahead of the project’s 2027 completion.

[smartcode_project_cta:default project_id=149952]

Raya: Rare apartment living in Gungahlin’s town centre

Leeka Group has gone down the path of bringing a heightened level of wellness to its recently unveiled Melbourne apartment development, Comme Prahran.

It isn't in the form of a suite of amenities, given the building is more boutique in nature with just 32 apartments, but with clever inclusions designed to uplift their residents lifestyle.

<a href="https://www.apartments.com.au/new-apartments/comme-prahran-182-194-commercial-road-prahran-vic-3181">Comme</a>, directly opposition the iconic Prahran Market on Commercial Road, has been designed by renowned architecture studio <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> and&nbsp;will introduce the first-of-its-kind multi-dimensional wellness offering, where physical, mental, social, environmental, and cultural well-being are embedded throughout.

“Prahran has long been a destination for culture, community and quality of life, and Comme builds on that in a deeply intentional way,” says Leeka Director, Chek Ming Cheng.&nbsp;

“This project introduces a new kind of urban sanctuary, one that adapts to individual definitions of wellness, whether that’s through nutrition, rest, movement, design or connection. Every space has been thoughtfully shaped to support the diverse rhythms of modern life."

[smartcode_project:default project_id=108413 project_image_fid=353544]

There will be a rooftop with a&nbsp;Zen garden designed by <a href="https://www.apartments.com.au/landscape-architect/plume-studio">Plume Landscape Architects</a>, offering&nbsp;a sensory experience that activates all five senses, an edible herb wall to taste, calming botanicals to smell, reflexology paths to feel, lush plantings to see and the gentle sounds of water and birdsong to hear.

Inside each residence, wellness is deeply personal, and Comme embraces this individuality with a suite of customisation options designed to enhance both health and lifestyle. Residents can tailor their homes with circadian lighting automation, supported by research linking it to improved well-being, better rest, and even longevity.&nbsp;

[smartcode_project:default project_id=108413 project_image_fid=353546]

Other add-ons residents can opt for include real-time air monitoring and purification systems, ensuring a cleaner, healthier environment, while blackout blinds help optimise sleep quality. Additionally, the option to include integrated smart home technologies and security measures with multiple controlled access points offers ease, convenience, and peace of mind, supporting day-to-day living and contributing to overall mental well-being.

Kitchens can be fitted with healthy cooking appliances such as steam ovens and taps for instant filtered, sparkling or hot water, while ensuites can be transformed into spa-style sanctuaries complete with steam showers, heated floors, rain heads, smart toilets, and sensor night lights to support restful sleep cycles. In the penthouse residence, further options include an outdoor spa for enhanced recovery and indulgence.

“Comme isn’t just about design, it’s about how space can support your day-to-day life," Chek added.

"Whether you like a steam shower, checking your indoor air quality, simply enjoying a quiet moment in the rooftop garden, or reflecting on the artworks in the building, wellness is part of your everyday routine, not an afterthought."

[smartcode_project:default project_id=108413 project_image_fid=353543]

The residences will feature open-plan layouts compliant with Better Apartment Design Standards (BADS), with floor-to-ceiling windows that maximise ventilation, natural light and thermal comfort. Finishes such as natural stones, timber flooring and low-VOC paints are complemented by facade design that filters dappled light and aids in thermal comfort.

Cera Stribley, Co-Founder, Domenic Cerantonio, said the first thing you notice is the light.

"Natural light floods the living spaces, casting a soft glow that instantly lifts your spirits. It's as if the outside world melts away, and you're cocooned in a peaceful oasis."

The gallery-style residential lobby will feature circadian-inspired lighting and artwork, while the ground-floor will offer retail and hospitality spaces.

The building’s mixed-use design fosters connection, with ground-floor retail and hospitality creating a vibrant, welcoming destination. These spaces are thoughtfully designed to enhance the precinct and bring it to life.

&nbsp;

[smartcode_project:default project_id=108413 project_image_fid=353545]

Sustainability and environmental responsibility are integral to Comme Prahran’s DNA. All homes are gas-free and designed to a 7-star energy average, with double glazing, WELS-rated plumbing, and EV charging capabilities available. A light-coloured exterior has been chosen to minimise heat absorption, supporting thermal efficiency and reducing reliance on artificial cooling.

Honouring the cultural richness of Prahran, the project reimagines an Edwardian-era landmark, integrating its historic character into a contemporary architectural form. Art experiences will activate the residential and retail lobbies, and a dedicated artwork on the external eastern facade will enrich the building’s street presence, embedding it into the creative fabric of the neighbourhood.

&nbsp;

[smartcode_project_cta:default project_id=108413]

Comme Prahran launches opposite Prahran Market

Apartment developer Third.i has seen "overwhelming interest" in its recently unveiled new harbourside apartment project, The Rushcutters.

<a href="https://www.apartments.com.au/new-apartments/the-rushcutters-51-57-bayswater-road-rushcutters-bay-nsw-2011">The Rushcutters</a>, which is being delivered in partnership with James Packer's NPACT, will comprise just 13 luxury two- and three-bedroom apartments.&nbsp;

Demand is predominantly coming from local downsizers.

[smartcode_project:default project_id=144646 project_image_fid=351903]

“We’ve been absolutely blown away by the level of interest in The Rushcutters,” said Luke Berry, Director and Co-founder Third.i Group.

“It’s clear that buyers are seeking more than just a place to live, they’re looking for a lifestyle upgrade. The ability to amalgamate apartments into expansive, whole-floor homes is a game-changer for downsizers who want space without the maintenance of a traditional house.”

The Rubinstein Group is marketing the project alongside Hume Residential and JLL.

“It’s no surprise that if you’re downsizing from a five-bedroom house in Bellevue Hill, for example, you want to maintain that sense of space and luxury when looking for your next home, "&nbsp;Gavin Rubinstein, Founder of The Rubinstein Group, said.

“The Rushcutters is a great fit. Amalgamating apartments to create a bespoke, whole-floor home is a natural progression for buyers who aren’t willing to compromise on size and/or quality.”

[smartcode_project:default project_id=144646 project_image_fid=351901]

Amalgamating apartments has become a common theme among high-end buyers across Third.i's portfolio including Muse in Potts Point, and Elevate Hume Place in Crows Nest, which set a Lower North Shore apartment record with the $15.1 million sale of an amalgamation of a penthouse and sub-penthouse.

“We’re witnessing a clear shift towards more amalgamations in a number of our projects across Sydney,” said Jason Fraser, Principal at Woods Bagot.

[smartcode_project:default project_id=144646 project_image_fid=351899]

“The ability to combine apartments is enabling buyers to create truly unique, house-sized residences with high-end finishes, and proximity to vibrant urban precincts. The desire to amalgamate apartments to bespoke, house-sized residences is becoming a defining feature of Sydney’s evolving luxury apartment market."

Due to the City of Sydney’s no net dwelling loss policy, Thirdi is only able to offer one level for amalgamation at The Rushcutters, combining two apartments into a single, expansive residence.

[smartcode_project_cta:default project_id=144646]

The Rushcutters a "great fit" for downsizers

Hotel Industry

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Hilton is set to return to Melbourne with a 600-room flagship five-star offering set to open in 2022.
There will be a five-year gap in the presence of one of the world's most famous hotel brands. 
The hotel will be at OSK's Melbourne Square Southbank, not far from the hotel group's former South Wharf site, which was rebranded as the Pan Pacific Melbourne in 2017.
Melbourne went from three Hilton properties to zero in a relatively short space of time, with only having DoubleTree representation.
The Airport Hilton is now the Parkroyal and Hilton on the Park is now the Pullman.
The new Hilton Melbourne Square have around 600 rooms in Tower Five of the six-tower $2.8 billion development.
It will be designed by Cox Architecture.
 
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j.ballantyne1990-6AQqhLzZaK

Hilton set to return to Melbourne in 2022

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Entrepreneur Martyn Barnes has signed an agreement with InterContinental Hotels Group (IHG) to bring its new hotel brand, voco, to Victoria’s Yarra Valley.
The 170-room new-build hotel, to be known as voco Yarra Valley, will open in 2021 and marks the second signing for the brand in Australia.
The hotel will feature touches such as an on-site gin distillery, a lavender farm, mirrored maze, an amphitheatre cut from natural ground and a provedore.
The voco brand was launched by IHG in June of this year with the rebranding of the Gold Coast’s Watermark Hotel &amp; Spa.
Abhijay Sandilya, IHG’s Senior Director of Development – Australasia, said the signing is a further step forward for the company which currently has 48 hotels operating under four brands in Australasia.
“IHG launched voco in June with the first signing for the brand in Australia, and we are so pleased to see the brand momentum continue here with the second signing,” Sandilya said.
“voco delivers a guest experience that stands out, with touches of charm and memorable, distinctive and dependable hallmarks, so we can’t think of a better partner for this new hotel than Martyn Barnes.
“The signing of voco Yarra Valley continues IHG’s ambition to take our brands into regional markets, including suburban micro-markets close to Australian capital cities.”
The hotel will try and offer guests a different kind of experience, said Martyn Barnes, Managing Director at Barnes Capital.
“As one of Australia’s premier wine regions, the last thing people want when they arrive in Yarra Valley is a vanilla experience,” he said.
“That’s why voco is the perfect fit, giving business and leisure guests a great, globally-branded, upscale hotel that guests can depend on, but that’s different enough to be fun.”
“I’m excited to work with IHG to open voco Yarra Valley, building on our partnership that will also see us opening Holiday Inn Melbourne Coburg in 2020.
“Watch this space, because we have more to come.”
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jonathanchancellor-7SQnKwU6yx

IHG teams up with Martyn Barnes for voco Yarra Valley hotel

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GUEST OBSERVER
While hotels in Sydney and Melbourne are experiencing unprecedented trading performance, there was a relative dearth of sales activity in 2017 with national transaction values down 35% compared to the 2016 calendar year.
There were no significant hotel sales recorded in Sydney’s core CBD and only a small number of investment grade hotel transactions in Melbourne’s CBD.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/transactions.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/19/transactions.jpg" alt="">
Since the peak of transaction sales set in CY 2015, there has been a precipitous decline in the total dollar- value of hotels transacted across Australia. Many owners seem to be opting to hold their hotels for fear of being cashed up without the ability to re-enter the market; which is becoming a self-fulfilling prophecy.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/transactions2014.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/19/transactions2014.jpg" alt="">
In 2018, we anticipate that Sydney and Melbourne markets will continue their strong trading performance given record international and domestic tourist numbers and visitor spend, and relatively muted supply growth.
There continues to be a fairly substantial (and apparently growing) price gap between Buyers and Sellers. This “gap” is accentuated in Perth and Brisbane where Sellers consider Sydney and Melbourne cap rates as being applicable to their markets.
We see counter cyclical opportunities in 2018 in Brisbane, which we consider has bottomed and will bene t from the Commonwealth Games and activities associated with the Queens Wharf development, as well as a number of other signi cant public infrastructure projects and large scale private developments. Conversely, Perth has additional new supply still to enter an already soft market, which in the short term will lead to further downward pressure on both occupancy and room rate. Likewise, this should give rise to buying opportunities for well capitalised counter-cyclical investors.
We are expecting developers in Sydney and Melbourne to exit their hotels to take advantage of robust capital values, lack of availability of existing investment grade hotels, and to capture the ubiquitous and deep pools of capital still searching for hotels in these key markets. The Developers exit point will be either a site sale with associated DA, turnkey sale with fund through obligations or project take out at completion.
Yield compression continues as the dearth of opportunities drives up pricing and leads to tighter yields (refer Graph 1):
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/savills1.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/19/savills1.jpg" alt="">
This lends weight to Savills Hotels often quoted notion of a global synchronisation of real estate investment yields, particularly in gateway markets like Sydney and Melbourne.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/yield.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/19/yield.jpg" alt="">
With the evolving situation regarding Australian Prudential Regulation Authority regulations, the spotlight on international bank capital adequacy ratios and the implementation of the so called “Basel IV” accord (arguably just a completion of the Basel III reforms), bank lenders in the Australian market will continue to scrutinise more carefully hotel assets, forecast cash flows and borrowers for the strength of their covenant. 
The likely effects include:
1. Assets or development projects which are not showing generous returns (and in the case of developments, a strong positive delta between total development cost and on completion value), adequate security (in essence, more modest loan to value ratios), serviceability and interest coverage will be rejected by Australian trading banks
2. Borrowers themselves will be heavily scrutinised – those with experience in hotel investment and ownership in the market, as well as healthy balance sheet positions, will obviously be preferred by traditional lenders and are therefore more likely to re-emerge as the most active buyers
3. Non-bank lenders will have an opportunity to supplant themselves over Australian banks and provide a range of debt products from ordinary senior debt to a range of structured debt solutions. This in itself should assist with a further maturation of the Australian hotel investment market
Direct overseas buyers and overseas equity (managed by local Australian funds) from mainland China, Hong Kong, Japan and Singapore continue to be the main sources of capital scouring the Australian market for hotel opportunities; however, local investors should not be disregarded and have been active players in the market, particularly in the second half of
We also foresee a return of traditional US, UK and European private equity and fund managers as active players in the local hotel investment landscape in 2018 and beyond.
Michael Simpson is the managing director of Savills Hotels.
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jrobinson-rf4aSBido9

Lack of Australian hotel sales in 2017 mask opportunities in 2018: Savills

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The hospitality sector continued its growth trajectory in 2017, according to recent data from Savills.
Revenue per available room Australia-wide increased 2.3% for the year-to-date till September, according to Savills Hotels recent quarterly update.
Sydney continued to outperform Australian markets with a RevPAR gap of $40+ over the next best market performer, Melbourne.
Perth was the worst performer, with RevPAR down down 13.3%.
The best growth markets were Canberra (up 11.8%), Cairns (up 9.4%) and Sydney (up 6.2%).   
<a href="https://www.propertyobserver.com.au/images/2017/11/27/RevPARmain.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/11/27/RevPARmain.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/11/27/RevPAR2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/11/27/RevPAR2.png" alt="">
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Sydney outperforms rest of Australia in hotel room rates: Savills

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Sydney and Melbourne retain the first and second ranks respectively in terms of revenue per available room (revPAR), according to Colliers International’s latest figures.
Sydney’s revPar grew 9.3 percent for the year up to July. The city also leads Melbourne in occupancy rate with nearly 90 percent occupancy rate, while the Victorian capital was in the high 80s.
Sydney also tops in the average daily rate, followed by Melbourne and the Gold Coast.
The hotel market snapshot also noted that Perth took the biggest fall in rankings, from third to sixth place.
Canberra was the biggest mover, from sixth to fourth.
<a href="https://www.propertyobserver.com.au/images/2017/09/11/HotelSnapshot.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/11/HotelSnapshot.jpg" alt="">
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Sydney keeps up strong growth in hotel sector: Colliers 

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Savills office in Vietnam has merged with Alternaty, a leading hotel advisory in Indochina, as part of its efforts to tap into the growing hospitality markets of the Asia Pacific, particularly South East Asia. 
Alternaty’s employees will join the hotel business at Savills and will be based in Savills’ Ho Chi Minh City office. 
Savills Hotel Asia Pacific, led by Raymond Clement, consists of individuals with experience and a strong track record across the tourism and hospitality sector. Mauro Gasparotti and Rudolf Hever will both take the role of director, Hotels, Savills Asia Pacific, driving business in Vietnam and South East Asia. 
On the team from Alternaty, Savills Vietnam managing director Neil MacGregor said: “The Alternaty team, led by Mauro and Rudolf, are well known as market leaders in hospitality in the IndoChina region. Their capabilities will add depth to establish a robust platform, offering a complete suite of services for the hotel development lifecycle.”
The merger will help Savills get a platform to tap into IndoChina’s rapidly growing hospitality markets, with Vietnam itself seeing a 26% increase in foreign arrivals in 2016.  
With a growing number of investors actively seeking hotel and resort assets, this will consolidate Savills’ investment brokerage platform.
The Hotel Advisory Services in Vietnam will provide hotel and resort market research including feasibility studies, operator selection, asset management and investment brokerage.
“We are delighted to become part of the Savills family and to leverage Savills’ extensive operation, sales and marketing platform in the region,” said Mauro Gasparotti, executive director at Alternaty.
Rudolf Hever, director of Hotels, Savills Asia Pacific said more players were entering Vietnam’s growing market with total hotel transaction volumes at nearly $500 million in the last 24 months. The number of five-star hotel rooms in 2015 soared by 37% year-on-year to reach 24,000 units, he added. 
This growing trend in hotel development can be seen across hotel segments with an estimated 15%-20% growth in total hotel supply in the short term. Besides the key cities of HCMC and Hanoi, up and coming markets such as Phu Quoc, Danang and Nha Trang are also catching investor attention. 
Alternaty is a boutique real estate consultancy which was founded in 2012. It is known for its contacts and track record in commercial property, hotel and resort advisory throughout the IndoChina region. 
The Savills Hotels team valued and advised on US$9.1 billion worth of hotel assets in Asia Pacific in 2016. Most recently, it has led the sale of the Anantara Ubud Bali, the Duxton Hotel Saigon and the Hyatt Regency Osaka.
 
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Savills Vietnam merges with hotel advisory firm

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From hip lobbies with a coffee shop ambiance to shared living spaces linking guest rooms, more hotels are turning their focus to providing inviting community areas.
For corporate travellers, it may mean sending a few emails from a co-working alcove complete with power and USB outlets, while leisure visitors may linger around tables stacked with board games or post photos to social media from the lounging zones.
“Today’s travelers often place greater value on convenience, sense of place and community than they do on the traditional luxuries offered by hotels,” says David A. Black, Americas Hotels Lead, JLL Project and Development Services. “That’s one reason why hotel companies are developing so many soft brands that have an emphasis on communal areas with spaces and experiences that bring people together in new ways.” 
The forthcoming Tru by Hilton is just one of the growing number of hotel brands encouraging its guests to spend less time in their rooms and more in specially designed communal areas. Aimed at Millennials — or people with a “Millennial mindset” — who want to connect with other travelers, the hotel’s innovative space called “The Hive” embodies the brand. Instead of a traditional lobby, guests have access to four zones — work, play, lounge, and eat — all designed for interaction and engagement.
Moxy Hotels, Marriott’s new boutique hotel brand, offers an industrial-style lobby with fun games on hand, along with coffee and full-service bars. And while not everyone will fancy the hotel’s signature feature, a communal ironing nook, Moxy Hotels is banking on Millennials appreciating its fresh approach.
“Some of this communal space is nothing new,” says Lauro Ferroni, JLL’s Global Head of Hotels &amp; Hospitality Research. “Hotels have always had lobbies, pools, bars and restaurants. But now the design and features of these communal spaces are being driven by hotels wanting to appeal to younger travelers.”
Going beyond the idea of a pool and sun-loungers as an outdoor communal space, one New Jersey hotel, The Asbury, has created a perennial backyard barbecue zone with Ping-Pong tables, live music, craft beer (served from a converted VW van), and food trucks.
<h2>Getting travelers together</h2>
The growing popularity of home rental platforms, such as Airbnb and HomeAway, and boutique hostels is also driving hotels to find new ways to accommodate larger groups of friends and families traveling together.
Marriott’s mid-range brand Element, which is aimed at guests staying beyond a few nights, is testing blocks of private rooms built around a communal kitchen and living room. “Really it’s about a much more shared economy these days. It’s much more about socializing and a sense of community when you travel,” says Toni Stoeckl, a Global Brand Leader at Marriott, in an interview with KTLA earlier this year.
The challenge for hotels is designing their communal areas in a way that appeals to their target guests – and provides them the requisite amount of privacy.
“Although there has been a growing focus on the Millennial traveler, hotel brands can’t afford to ignore their more “seasoned” travelers,” says Black. “That’s why design solutions must be flexible enough to provide both communal spaces which appeal to the co-working, co-living generation as well as spaces which appeal to baby boomers.  It’s not a one size fits all approach.”
In addition, people traveling in a group have different needs and expectations to those traveling in a couple.
“When you’re traveling, the communal experiences could turn out to be the most memorable part of the trip,” says Ferroni. “Yet you’re also going to have a lot of people who will say right off the bat that they have no interest in trying something like this, whether they’re business travelers who need their own space to get the job done or leisure travelers who want some time on their own.”
<h2>Is communal the way forward?</h2>
With the concepts of co-living and co-working taking off, bigger and more innovative social areas in hotels could well be in the cards – especially for brands targeting younger segments of the market.
Within the U.S., Ferroni believes it’s a concept that will take root in the bigger cities.
“I think it’s going to gain traction in large gateway markets like New York, Miami, or San Francisco where you have a large share of people coming from Europe who might be more comfortable with this concept,” he says.
Hotel executives might not be sure whether this is the next big thing, speculates Ferroni, but he says that it would be foolish for them not to give it a try. “They’re looking at it from a trial-and-error standpoint. Large hotel companies that want to be innovative can’t afford to ignore the potential of shared spaces – even if Millennials are not their key audience.”
This article by Laura Agadoni was featured in <a href="https://www.jllrealviews.com/industries/hotels-take-a-fresh-look-at-communal-spaces/" target="_blank">JLL Real Views</a>.
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Hotels take a fresh look at communal spaces

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Newly formed management company, Crystalbrook Collection, will invest $370 million into the development of three hotels in Cairns. 
The timeline for the projects will see a 5+ star hotel become operational each year for the next three years.
Crystalbrook Collection CEO Mark Davie said the investment was in response to the expected spurt in tourism in Cairns.
“We believe that Cairns is in need of high quality hotels. Our developments are set to respond to anticipated growth in tourism as highlighted by recent Smith Travel Research reports,” he said.
Statistics compiled by Smith Travel Research for the 12 months to January 2016 showed a 74.7% occupancy rates in Cairns, up by 8.6% and double digit growth in revenue per room available, with growth figures coming in at 15.1%.
Cairns developer Prime Group will develop the hotels from concept to conception. The project pipeline includes:
137 Esplanade — A 264-room hotel, previously operating as Rydges Tradewinds, will be redeveloped to create a 311-room hotel tower with a 12-storey tower built alongside. The Great Barrier Reef inspired development will play host to a rooftop bar and lounge. Beginning construction in 2017, the property is set to be operational by July 2018.
163 Abbott Street, Cairns — A 4,000 sqm greenfield block located in the city centre will hold two towers, the first being a 222-room hotel with function rooms, restaurants and bars. The second would be a 110-room apartment complex that will be released on the market. Development will begin mid 2017 with completion expected February 2019.
85 Esplanade (Bellview) — A waterfront esplanade location will hold a new hotel (constructed on the site of a previously existing hotel and office suite). Construction on the 300-room hotel will begin late 2018 with operations expected to begin October 2019.
<img src="https://www.urban.com.au/images/2017/03/06/Cairns2.png" alt="">
Each development will have a minimum $100 million invested with the overall project expected to inject $900 million into the economy. 
Davie said the collection would be self-managed, turning down offers from major luxury hotel chains to manage the assets. 
“We held significant discussions regarding management with several brands, both leading luxury operators and white-label groups, however for a growing brand focused on authenticity, self-management was determined the best option.”
Once operational, the hotels will join Crystalbrook Collection’s recently acquired portfolio of tourism entities - Crystalbrook Lodge, a lodge experience in Northern Queensland and M.V Bahama, a 28-million luxury charter yacht based in Port Douglas. 
The company also has investments within the Queensland pastoral industry, owing an 85,000acre working cattle station, with a recent announcement indicating a further $20 million-dollar pastoral industry investment in the immediate future. 
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Three 5-star hotels planned for Cairns

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Performance in 2017 will differ markedly across the major cities throughout Australia as further divergence will occur in the hotel sector, according to CBRE’s latest report.
Some markets struggling to cope with unfavourable trading conditions and increases in supply.
However, the star performers of 2016 – Cairns, the Gold Coast, Hobart – will continue their rise off the back of renewed interest in their locale by both foreign and domestic tourists.
Figure 14 illustrates Sydney’s continued strong revenue per available room (RevPAR) growth off the back of favourable trading conditions in 2015.
<a href="https://www.propertyobserver.com.au/images/2017/02/17/Figure%2014.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/17/Figure%2014.jpg" alt="">
In particular attracting a good mix of corporate and leisure tourists that enabled operators to increase room rates.
With the International Convention Centre opening in early 2017 Sydney room rates are expected to continue to climb off the back of increased corporate travel, albeit at a more moderate pace due to increases in supply.
Despite Melbourne’s strong start to the year there are signs that the market is struggling to cope with the increases in supply entering the market.
Melbourne’s strong performance historically has been largely driven by occupancy rather than room rate growth so any sign of occupancy pressure will see rates decline somewhat in 2017 before stabilising in 2018.
The resource markets of Brisbane and Perth continue to lag the rest of the nation; both saw revenue per available room (RevPAR) declines in the double digits.
The downturn in mining coincided with significant increases in supply in Brisbane which exacerbated the decline in performance.
A problem that Perth will have to contend with in the coming years as it nears the peak of the development cycle in 2018-19.
The more leisure-based destinations of Cairns, the Gold Coast and Hobart have been the star performers in the market as they continue to attract large volumes of both domestic and international visitors.
Admittedly these three markets are coming off a low base as a result of tough trading conditions pre and post GFC.
However 2016’s performance has still been impressive and is set to continue in the coming years as all three benefit from limited supply pipelines coupled with renewed tourist interest.
The year ahead will see increases in supply for the majority of key markets including Melbourne, Sydney, Brisbane and Perth.
However, they will all cope in different ways with Perth and Brisbane forecast to see further declines in hotel performance.
Whilst Sydney is expected to cope well with this increased supply, Melbourne will likely see small falls in room rates and occupancy levels.
Cairns and the Gold Coast have limited pipeline with no major new supply coming into the market in 2017.
“However, such is the interest in these regions we can expect to see developers announcing plans to enter the market, particularly the Gold Coast,” the report stated.
What will be of interest is the style of hotels that are announced in 2017 as recent trends reflect a shift towards greater tailoring of guest experiences such as Accor’s Mama Shelter or IHG’s EVEN Hotels.
In order to stand out from the crowd operators are offering unique experiences to pique interest and capture market share, particularly from the millennial generation, so we will see further announcements regarding these lifestyle brands coming to Australia.
The investment market has been dominated by overseas capital in the last three years and 2017 will likely be no different.
The current capital flight from China should continue to unfold and be the dominant source of capital in 2017 as investors seek safe-havens and long-term income generating assets.
Due to the tightly held nature of CBD markets investors will continue to look at fringe-CBD hotels as well as those in more regional locations such as Cairns and the Gold Coast.
Investors keen to move further up the risk curve will start to look at assets in Brisbane and Perth for potential counter-cyclical investment opportunities.
These markets have seen limited transaction activity over the last few years but such is the dearth of quality stock available in Sydney and Melbourne CBDs that investors may start to turn their attention back to these resource states.
<div>
Office to residential conversions have been popular with investors and developers alike over the last few years, particularly in Melbourne and Sydney.
But with the residential market showing signs of cooling, the potential for conversions earmarked for residential to change to hotels is increasing.
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Hotel market reporting struggles with supply increase and unfavourable conditions: CBRE

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One of the main determining factors of the overall strong hotel performance is the recent surge in the number of international and domestic tourists, according to CBRE’s latest report.
Australia has seen a steady increase in international visitors over the last decade, but in the last few years there has been rapid expansion, particularly from Asia.
Since 2009 the number of international visitors has increased by 44 percent, recently surpassing seven million annually and is forecast by Tourism Research Australia (TRA) to surpass ten million in 2020.
New Zealand remains the largest source of international visitors at over one million annually, but 2017 will see this group replaced by China as the number one source.
Chinese visitors already account for the largest share of international visitor nights at over 17%.
The domestic market has seen strong growth since 2013 – particularly in the leisure category – as a result of a weakened Australian dollar, but with recent gains against some major currencies, 2017 will likely see this rate of growth slow.
However, a mitigating factor will be corporate travel, particularly in states with strong growth in business activity and the broader economy.
Figure 15 illustrates the historical growth of a selection of major international sources of visitors over the last decade, and the shaded area is how TRA expects these countries to grow over the next decade.
China is by far-and-away the strongest growing market, with an average growth rate of 13% until 2025 when it is expected that over three million Chinese will visit Australia per year.
<a href="https://www.propertyobserver.com.au/images/2017/02/17/Figure%2015.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/17/Figure%2015.png" alt="">
Driving this growth of Chinese tourists will be the continued establishing of new airline routes which will be the key to harnessing the massive tourist potential of China.
This would be such as China Southern’s new route to Adelaide which is expected to bring in an over $20 million to the state economy annually.
The Chinese and Australian governments declared 2017 to be the “China-Australia Year of Tourism” with the objective to increase tourism between the two nations and also bilateral relations.
All Chinese airlines that currently fly directly to Australia have pledged support to the scheme and are opening up more routes outside of the major hubs of Beijing and Shanghai.
This will give Australians greater choice when visiting China, but more importantly for the hotel industry within Australia it will open up new resources of Chinese visitors.
Currently less than 2 percent of Chinese tourists visit Australia, and already we have seen how big an impact they have had on the hotel industry.
So if this number does double in the next 5-10 years then the hotel market will continue to see strong growth for the foreseeable future.
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