Industry experts are appealing for further hotel investment in Brisbane, with estimates suggesting hotel shortages are costing the city up to $130 million in visitor expenditure.
Following a spike in business events and leisure visitors in recent years, Lord Mayor Graham Quirk says there are now significantly more visitors than available hotel rooms in Brisbane city.
“Current research estimates Brisbane is losing around 87,000 visitors and $130 million in visitor expenditure due to hotel shortages,” he said. “This is equivalent to more than 1100 jobs and $106 million in economic activity for the city.”
On the back of ongoing growth in visitor numbers, Quirk said Brisbane is now in desperate need for more hotel infrastructure. No action will cost the city millions in economic benefits, he warned.
“Brisbane’s hotel industry has experienced strong trading conditions over a number of years and has the capacity for an additional 299-446 hotel rooms a year for the next 10 years to meet current and future demand,” he said.
Brisbane Marketing has taken steps to address the problem, launching a new report to encourage international investors to back Brisbane hotels. The report, called ‘A Guide to Hotel Investment Brisbane, Australia’, also re-iterates the need to provide accommodation for 7000 guests and advisors for the G20.
Brisbane Marketing chief executive John Aitken remained confident the city's reputation would lure hotel investors and facilitate new infrastructure that would ultimately ease current hotel shortages.
“Brisbane is an attractive proposition for potential investors [and] the many recent acquisitions and planned refurbishment and expansion of existing hotels show there is great interest in Brisbane’s hotel market,” he said.
Many developments are in the pipeline for Brisbane at present. Brisbane Marriott has been picked up by Starhill Real Estate Investment Trust, Shangri La has rebadged the Holiday Inn as a Traders Hotel, and Starwood plans to open a Four Points by Sheraton in January 2014. SilverNeedle Hospitality also plans to open the refurbished Chifley Hotel next year.
