A surge in the number of overseas tourists, boosted by the weaker dollar, has triggered a new round of hotel developments and investments in Australia.
The latest JLL Asia-Pacific Hotel Investment report says sizeable investments in Australia and Japan resulted in 146 hotel deals across the Asia-Pacific region last year totalling $US7.5 billion ($A9.6 billion).
The sale of the five-star Sheraton on the Park in Sydney for $US398.2 million to China-based company Sunshine Insurance Group Corporation led the way in terms of the big deals completed last year.
Peter Harper, senior vice-president of investment sales at JLL, saidAustralia would continue to be a major focus of Asian-based global investors because of a favourable exchange rate and a perception of better value when compared to other global cities.
"There were quite a few large scale transactions in Australia last year, including the Sofitel Sydney Wentworth for $US191 million and the Sheraton Noosa Resort and Spa transacting in excess of $US100 million," he said.
On Sunday, the listed Minor Hotel Group announced its plans to expand its presence in Australia with the launch of two new properties in Perth – AVANI Hotel and AVANI Residences – valued at more than $110 million.
Its first foray into Australia was the takeover of the Oaks Group, which has a portfolio of 50 Oaks hotels and resorts.
Minor Hotel Group chief executive Dillip Rajakarier said the company was committed to further development and expansion in Australia.
Mr Rajakarier said the redevelopment of the two lots was a major milestone for the $5 billion Perth City Link project.
Under the scheme, an upscale AVANI Hotel offering about 250 rooms will be completed in the last quarter of 2017. The AVANI Residences will have more than 200 rooms for sale, comprising one- and two-bedroom serviced apartments.
"We are very excited to announce this new hotel and residential development in the centre of Perth," Mr Rajakarier said.
"We have been actively exploring opportunities to bring some of our other brands into the Australasia region."
Minor International, the parent company of Minor Hotel Group, is also expanding its food group in Australia. Last year it announced it was buying a majority stake in Melbourne's VGC Food Group, which owns Veneziano Coffee Roasters.
