Australia’s accommodation assets under management have been listed at AU$120 billion in an industry-first report by commercial real estate firm ResortBrokers.
ResortBrokers’ Management Rights (MR) Report 2022 found that the estimated total value of the MR industry stands at AU4.8 billion, with 250,652 lots under the model.
Sebel Residences, Mantra and Peppers by Accor, and Oaks and Avani by Minor Hotels are among the major accommodation brands which operate Management Rights in Australia.
“The industry is a key cornerstone of Australia’s tourism sector, offering thousands of professionally managed serviced apartments to the market ensuring higher level of security, health and safety when compared to an Airbnb,” said ResortBrokers Director, Alex Cook.
“Generally speaking, ResortBrokers anticipates the short-to-medium term outlook for the Management Rights’ market to be extremely positive.”
Management Rights’ transactions make up roughly half of ResortBrokers’ annual sales volume. The company is working with government and peak industry bodies such as ARAMA, to ensure the industry is viable and represents the best interests of all stakeholders.
“ResortBrokers captures more than half of the entire Australian Management Rights’ market with 51% market share and 376 sales over the past five years, worth more than $546 million,” Cook says.
ResortBrokers found Management Rights is strongest in Queensland, although the model exists in all other states and territories under varying legislation. In the past five years, Brisbane recorded 40% of all transactions, followed by the Gold Coast (28%); Sunshine Coast (12%); North Queensland (10%); New South Wales (6%); and Melbourne (4%).
Cook pointed to key trends in this sector including an increase in high-net-worth private operators, syndicates and private equity competing for the best and biggest MRs; Off-The-Plan opportunities becoming the most sought-after MR type; and many developers opting to establish MRs as “business only” assets.
Article source: www.hotelmanagement.com.au