Capital Markets Investment Review 2024

The Australian hotel and tourism sector has seen a remarkable comeback after the pandemic, yet 2023 brought new challenges for hotel investors.

Australian hotel investment volumes held up well with full year volumes reaching $2.4 billion, representing a decrease of just 7 per cent on 2022’s dollar volume with an availability of stock post a development phase and boosted by ten premium asset sales.

Pent-up demand for travel remains elevated and the growth profile projects a strong and progressive recovery to pre-pandemic norms.

A new narrative will determine investor behaviour in 2024 with interest rates at or near the high. Diversification and active risk management will be critical components of portfolio construction.

Transactional activity is likely to improve with growing optimism that available capital will match up with the opportunities that market conditions are creating.