Have Hotel & Restaurant values bottomed yet?
Posted, February 14th, 2015
There has been very little positive world economic news since the beginning of the Global Financial Crisis.
Despite economic data showing that the Australian economy is faring much better compared to the rest of the world we have not been immune.
The strong Australian dollar has hit many Australian exporters hard. This includes our previously very strong mining industry which is showing signs of slowing down due to softening of demand from China and consequent falls in commodity prices.
With all this so-called bad news it was interesting to hear in the press that tourist numbers have recently increased. Also interesting to note was that despite the general retail industry remaining fairly weak, food and beverage sales including restaurants and cafes continued to increase.
Many tourist commentators are also predicting hotel accommodation room rates to rise. In addition, with revenue due to lack of new hotel/accommodation property investment & development.
Around 9 million tourists visit Australia every year. This number is predicted to quadruple over the next 20 years. The Sydney Daily Telegraph recently reported that
?Australia will no longer rely on the export of natural resources but become better known as an explorer of services such as tourism?.
What next for Hotel & Restaurant Values
With all this happening we must be close to seeing more Australian Hospitality & Tourism buying opportunities. Time will tell.
Please contact us if we can assist you to discuss any buying or selling opportunities.