Melbourne-based Art Series Hotels continues to eye Sydney and Brisbane, but has admitted overwhelming competition from domestic and international investors could delay its entry into those markets.
The firm will open an Adelaide property, The Watson, at the end of 2013 in Walkerville in a property owned by parent firm Asian Pacific Group.
“If I had a magic wand it would be Sydney or Brisbane,” group general manager Troy Cuthbertson told Travel Today.
Art Series continues to look for opportunities in those gateways, but he highlighted competition as a major obstacle.
“It’s not just interest within Australia, but international investors and brands looking to have a presence in Australia,” he said. “It’s going to be challenging, but we certainly want to be in those cities.”
However, it has secured an additional Melbourne property close to the Royal Children’s Hospital to open in late 2014 and is targeting an additional three properties within the next five years. While Sydney and Brisbane are high on the list, Cuthbertson revealed opportunities in Perth or New Zealand would also be considered.
Meanwhile, the firm is focused on growing its international division, which currently accounts for 14% of its business, through the use of marketing campaigns to drive sales in quieter periods.
In 2010, its Steal Banksy campaign made headlines around the world, followed in 2011 by Which Warhol? Both campaigns generated bookings from as far afield as Ethiopia, Cuthbertson said.
“The challenge is what do we do next,” he said.
