More than 40,000 of Australia’s hotel rooms are aged 20 years plus, posing a considerable challenge for the industry over the coming decade, new research has revealed.
Jones Lang LaSalle Hotels’ research revealed that Australia’s accommodation product had aged significantly with an estimated average age of 10 to 14 years across the country.
Of the seven state capitals, Darwin had the newest rooms aged between five and nine years, while Perth, Canberra and Hobart had the oldest rooms aged between 15 and 19 years.
The average was skewed slightly by newer serviced apartments, while hotel rooms were far older.
“It is generally accepted that the sustainable life for a real estate asset is around 30 to 40 years before extensive refurbishment and replacement works are required,” the report said.
“A high proportion of rooms will therefore require major works over the coming decade,” it predicted, adding that refurbishment costs escalated in line with the age of product.
Technology would become a major issue for many hotels, with the necessary infrastructure often requiring extensive refurbishment in older properties.
