MaxCap Australian Hotel Market Research Update

After undertaking research on the Australian Hotel Market, MaxCap has seen the hotel and tourism sectors experience significant decline in 2020 in the wake of COVID-19. However, positive recovery signs are emerging with the increase in domestic travel in late 2020, which is expected to continue throughout 2021.

We are aware of several earmarked hotel developments which are expected to commence construction in the next 12 months. As construction periods are typically 18 to 24 months for a major hotel project, the near terms risks are also expected to be largely alleviated by the time construction completes. As a result, MaxCap expects to see strong risk-adjusted opportunities appear in the non-bank space for well-structured debt investments.

David Oudshoorn, State Director – NSW, provides an overview of the Australian market in this short video below. A copy of our research paper is also available.

To view more papers from our research series, click here.