Chinese step up investment in Australian hotel sector
Mainland interest in sector grows strongly to become the fifth-biggest investor in country
Although new players in Australia's hotel sector, the Chinese are rapidly accelerating their investments this year.
"There is growing Chinese interest in hotel investment in Australia," said Oscar Westerlund, the director of strategic hotels at CBRE Hotels in Australia. "In the past three years, there have been eight major hotel investments involving first-time investors from China. This represents a significant proportion of total hotel sales in Australia."
Earlier this year, Shanghai-based Greenland launched a property project costing more than A$600 million (HK$4.3 billion) in Sydney, its first in the country, according to the Australian government website.
The Greenland Centre, which includes a high-end boutique hotel and a residential tower in the city's central business district, is expected to be completed in 2017.
Greenland's investment surpasses the total Chinese investment in Australian hotels in the past three years.
Mainland Chinese investors bought more than 970 hotel rooms in the three years for US$270 million, Westerlund said. In comparison, Hong Kong investors spent US$580 million for 1,667 hotel rooms over the same period.
"Hong Kong investors have a head start on the mainland Chinese as they have been involved in Australia for some time already," he said.