KEY hotels in Sydney and Cairns will experience turn-away demand in the next 12 months, according to a Colliers Jardine report.
The Australian Hotel and Tourism Property Market Report says Australian hotels are enjoying buoyant trading, as seen in the nationwide 6.6 per cent increase in room demand last year.
Allan Yeung, Colliers Jardine Hong Kong managing director, said: 'Demand is particularly strong in Sydney, Melbourne and Queensland, where higher occupancy is supporting tariff increases which is contributing to increased profits and values.
'There is increasing domestic investor interest in local hotel property, while Southeast Asian investors are maintaining their strong interest. Singaporean investors continued to dominate market activity last year, but the steadily improving yields are enticing local investors back.' Cited as a watershed year for the hotel industry by the report, Australia attracted a record number of domestic and international visitors last year.
The number of international tourists grew to 3.4 million, an increase of 12 per cent over 1993.
A record 34.5 million room nights were sold, up 6.6 per cent on the previous year.
