The outlook for Australasia hotels for 2022-2023 is positive as the return of travel brings confidence and continued investment to the market. TFE Hotels Development Director John Sutcliffe discusses development opportunities in the current climate and explains why a bespoke approach will be vital in the years to come.
As we approach a new financial year there is still a high level of activity in the ANZ hotel development market and I believe TFE Hotels has never been better placed to partner with owners and developers to extract maximum value from their assets.
The 17 new hotels we opened during the pandemic – as well as the strategic renovations undertaken at several properties – ensured greater consistency between our brands. This, in turn, has led to increased interest from current owners and financial partners, as well as new investors actively seeking sites to develop under a TFE brand.
The current climate means that not all of these opportunities are new construction. For example, our Adina Hotels brand lends itself to repositioning assets from commercial use to a hotel. While our flexibility in design and deal structures allows TFE to continue to deliver compelling propositions that are attractive to developers.
The ongoing challenges of rising construction and inflation costs are not lost on TFE and, as owners and developers ourselves, we continue to use the same in-house engineering design team and business partnerships that have enabled us to develop premier hotels in key locations, such as our A by Adina in Sydney, to achieve returns that ensure developments are commercially viable for owners.
Additionally, in my role, I seek to understand and address the key challenges that developers face early on so that we can align our deal structures accordingly. I think this personalized and highly personal approach to each development will be vital over the next two years.
As we head into 22/23 there is a buzz of excitement around TFE, with several new hotels nearing the end of development – including Adina Pentridge in Melbourne and Vibe Hotel Adelaide as well as some developments in world class which have just been inaugurated. key gateway towns which I believe will enhance our ability to deliver top-tier hotels in key locations across ANZ.
Read more about the hotel development outlook for 2022-2023 in the latest issue of HM Magazine.