A Guide To Hotel Investment in Brisbane, Australia 2014

A guide to
HOTEL INVESTMENT
IN BRISBANE, AUSTRALIA
2014
million
population
$135 billion
economy
4.3
million
visitor nights
77%
occupancy
8.1%
growth in ADR
to $183
1.97
million
room nights sold
278,000
room nights deferred each
year due to supply shortage
Contents
Premiers Foreword
02
Lord Mayors Foreword
03
Why invest in Brisbane hotels
05
Brisbane Australias premier hotel

investment destination
08
Economy
09
Resources and Energy
09
Infrastructure
10
Driving tourism demand
16
Business events
16
Major events
19
World-class precincts
22
Strong demand
26
Purpose of visit
26
Visitor origin
26
Visitor expenditure
27
Visitor nights
28
Robust trading conditions
30
Trading by sub-market
31
Trading by star category
31
Room to grow
34
Hotels versus serviced apartments
34
Supply by star category
35
New hotel supply
35
Future sustainable supply
36
Pro-business environment
38
Thinking of investing?
42
Appendix
46
01 Hotel Investment in Brisbane, Australia
Premiers Foreword
My government
is focused on
revitalising the
tourism industry
and returning
Queensland to
its rightful place
as Australias number one tourist
destination.
We believe it is important that local
and state governments work together
to support growth - not only in hotel
supply and demand, but also with
the development of new facilities and
infrastructure. To reinforce this, we
have set an ambitious target to double
overnight visitor expenditure from $15
billion to $30 billion by 2020, creating
even more jobs for the tourism sector.
Tourism and construction are two of
the critical pillars of the Queensland
economy which will continue to grow
as local and state governments work
towards providing a better business
environment with streamlined
planning processes.
Already, Queensland has one
of the fastest economic growth
rates in the nation, cementing our
position as the best place in Australia
to invest, employ and grow your
business. The economy continues
to expand, growing at 4.1 per cent,
with Queensland creating more jobs
than any other state in the last
twelve months.
In 2013, Brisbane experienced strong
growth in both international and
domestic leisure visitors. Increased
visitation has led to more travellers
looking for quality hotels, leading to
greater investment demand in the
leisure market.
As part of our commitment to the

citys growth, this government has
released public land for development
- the most significant being the
Queens Wharf Precinct. Opening
up this historic site for development
presents a unique opportunity
for developers and investors to
contribute to the creation of a
landmark attraction within the heart
of the CBD.
Our partnership with Brisbane
City Council continues to support
the development of new hotels in
Brisbane, as well as create events
and new infrastructure that will drive
demand and bring more visitors to
Brisbane City.
We have set our sights on helping
this great city become a world class
destination, and I believe this vision is
starting to be realised. The Queensland
Government will continue to play our
part by helping grow the economy
and by creating more jobs and more
opportunities for Queenslanders.
Campbell Newman
Premier of Queensland
Tourism and
construction are two
of the critical pillars
of the Queensland
economy
Excitingly, in November 2014, the

worlds attention will be focused
squarely on Brisbane with the G20
Leaders Summit being held in the city.
Hotel Investment in Brisbane, Australia 02
Lord Mayors Foreword
As Australias New
World City, Brisbane
offers incredible
opportunities for
investment and
growth.
Two years ago I
committed resources to attract and
facilitate new hotel investment in the
city, following research undertaken by
Brisbane Marketing which revealed a
chronic undersupply of quality
hotel rooms.
Since the Guide to Hotel Investment in
Brisbane was first released last year, we
have seen early signs of success with
the construction and development of
a number of new hotels well underway.
This is great progress and reflects
increased levels of hotel investment in
the city.
Nonetheless, the latest figures, detailed
in this updated edition of the guide,
show we are still forgoing thousands of
room nights each year and missing out
on millions of dollars in lost
visitor expenditure.
Substantially more investment is
needed to bridge the remaining
gap between available supply and
anticipated demand.
In recent years there has been
considerable investment by Brisbane
City Council to improve the citys appeal
as a visitor destination, including a new
leisure campaign and specific activity to
drive weekend visits. This, in combination
with an improved corporate travel
environment, is expected to drive strong
future demand.
As host of the 2014 G20 Leaders
Summit, Brisbane has a once-in-a
generation opportunity to showcase its
credentials as a new world city.
This event, and the 7000 delegates and

international media in attendance, is
expected to exponentially drive further
demand for more hotel rooms in the city.
As we attract new hotels to the city,
improved levels of supply will also
enhance Brisbanes reputation as
a premier convention and tourist
destination, attracting even more visitors
from emerging markets like China.
Chinese visitation to Brisbane continues
to grow, with figures indicating a
staggering 240 per cent increase over
the past 10 years.
As this report shows, Brisbane continues
to offer significant opportunities for hotel
operators, investors and developers.
From a national trading perspective,
Brisbane performed above the
Australian average in 2013 and was
among the best-performing hotel
markets in the country.
The development of more four and
five-star branded hotels in Brisbane
remains one of the citys top priorities
and I welcome further hotel investment
in the city.
Graham Quirk
Lord Mayor of Brisbane
The development
of more four and
five-star branded hotels
in Brisbane remains
one of the citys top
priorities
Why invest in Brisbane hotels
Brisbanes status as Australias dynamic

the announcement Brisbane will host
More than $75 billion worth of resources

and energy projects committed or
under construction in Queensland.
the 2014 G20 Leaders Summit. With the
Growing tourism demand
new world city was further bolstered by
worlds eyes on Brisbane, there is no better

time to consider investment in new hotels.
Due to the increasing demand for
internationally recognised, branded hotel
room supply, it is estimated that Brisbane
is missing out on approximately 121,000
visitors a year and $140 million in visitor
expenditure. This equates to an estimated
278,000 deferred room nights every year
approximately 14 per cent of current demand.
New branded hotel supply in Brisbane is
crucial to satisfy growth markets which are
being driven by business and events, leisure
visitors and developing markets like China.
These growth markets are seeking full service
and internationally branded hotels.
This investment guide provides an analysis
of the core fundamentals supporting the
Brisbane hotel market, allowing prospective
hotel investors, developers and operators
to assess and build a credible business
case to invest.
The local, state and federal government,

through Brisbane Marketing, Tourism and
Events Queensland, and Tourism Australia,
continue to work collaboratively to grow
visitation demand:
Long-term destination marketing
being delivered with a greater focus
on targeting leisure and international
visitors to the city
More than 147,000 convention delegates
hosted and welcomed in 2013
Robust and well-established yearround calendar of major events and
conferences
Outstanding range of convention and
major events venues underpinning
secured events.
Excellent economic fundamentals
Brisbane is home to a number of

established and emerging retail,
entertainment and dining precincts, with
the Queensland Government and Brisbane
City Council working to unlock land for
private development including:
With more than 45 per cent of Queenslands

population and an economy valued at $135
billion, Brisbane is the economic, tourism
and business hub of Queensland:
Development and release of a new city

centre master plan which provides a
clear vision for future investment and
development
Brisbanes economy is forecast to grow

by more than 60 per cent by 2031 to
$217 billion
Home to leading dining, entertainment

and retail precincts such as South Bank
and Queen Street Mall
Population of over two million, expected

to increase to over three million by 2031
Strong commitment from both local

and state government to develop new
world-class precincts such as Queens
Wharf, Howard Smith Wharves and
Kurilpa Riverfront.
The Brisbane hotel market is rich with

opportunity. Heres why:
World-class infrastructure driving

economic and visitation demand
with more than $7.5 billion worth of
infrastructure under construction or in
the pipeline
Strong demand
Brisbanes visitor economy is growing
strongly, particularly in key segments
like leisure and events travel, and Asian
tourism:
4.3 million visitor nights in 2013
$6.1 billion spent by visitors to
Brisbane in 2013
Chinese visitors numbers growing at
21.8 per cent per annum since 2008
10 per cent increase in leisure
travellers staying in hotels in 2013.

Despite weaker trading conditions
experienced in 2013, Brisbane continues
to be the fourth-best performing
market in Australia, with healthy trading
forecast in 2014 and beyond:
77 per cent average occupancy rate
in 2013
1.97 million room nights sold in 2013,
representing an increase of 1.9 per
cent since 2009
Average Daily Rate (ADR) increase
of 8.1 per cent since 2009 to 2013
(or average annual growth of 2.0 per
cent) to $183
Revenue per available room
(RevPAR) increase of 10.3 per cent
since 2009 to 2013 (or average
annual growth of 2.5 per cent)
to $142.
Room to grow
To meet
increasing
demand from China
and leisure visitors seeking
recognised brands and premium
service, it is estimated Brisbane
needs an additional 216 to 330
rooms per year to 2022.
Pro-business environment
Private sector investment is strongly
supported by state and local
governments, with active support and
facilitation for new investors, including:
Dedicated case managers for
investors, developers and operators
looking for hotel opportunities in
Brisbane
Streamlined approvals by both levels
of government for hotel projects
Strong funding commitment
in destination marketing to
build demand from leisure and
international visitors
Funding secured to attract greater
aviation capacity and new routes
into Brisbane
Lowest payroll taxes in Australia.
The Queensland Government and
Brisbane City Council are working
together in partnership to promote new
investment in Brisbane hotels. If you
are interested in investing, this guide
provides you with information and
contacts to take the next step.
Growth in capacity is required to enable

the market to grow demand and attract
new visitors to the city. Brisbanes hotel
market has not kept pace creating
opportunities for investors, developers
and operators to plant a flag here:
Less than 3 per cent increase in total
room supply added to the market
since 2010
Brisbane Australias premier
hotel investment destination
Brisbane, Australias new world city,
Economy
is an economic powerhouse and
Brisbane
the tourism and business hub of
Queenslands capital, the City of

Brisbane, is Australias third-largest
capital city, covering more than 1300km2
in area with a population of more than
1.11 million. The Greater Brisbane region,
which extends beyond the Brisbane
metropolitan area to Ipswich, Logan,
Moreton Bay and Redlands, has a
population of 2.13 million with a total
employed workforce of 1.1 million.
Queensland. With a population of

over two million, Brisbane has more
than 45 per cent of the states
population, with an economy valued
at $135 billion. Recognised as one
of Australias major business and
commercial hubs, corporate companies
have been attracted to Brisbanes
consistently strong economic
As the closest capital city on the

eastern seaboard to Australias three
largest export markets China, Japan
and South Korea Brisbane is ideally
located to attract global business
within a similar time zone. The city
has become a world-leading mining
and resource sector hub, with a large
number of companies providing goods,
services, technologies and innovative
manufacturing to this sector.
performance, highly skilled and creative

workforce, and some of the worlds
most advanced infrastructure.
As the closest
capital city on the
eastern seaboard to
Australias three largest
export markets, Brisbane is
ideally located to attract
global business
Brisbane Key Statistics
Area (km2)
Brisbane LGA
Greater Brisbane
1338
15,852
Population 2012
1,110,473
2,192,065
Population 2031 (forecast)2
1,272,272
3,042,276
Population growth
14.6%
38.8%
Population growth (per

annum)
0.7%
1.7%
Brisbane LGA
Growth (%)
Total floor space 2011 (m2)3
13,748,693
Total projected floor space

2031 (m2)3
20,892,341
Value of economy 20134
$135 billion
Projected value of economy

20315
$217 billion
52.0%
60.7%
Australian Bureau of Statistics.
Office of Economic and Statistical Research, Queensland Treasury, medium series.
3
Brisbane City Council, Brisbane Inner City Investment Prospectus, Second Half 2013. Floor space includes
retail, commercial, industrial, community purpose and other excludes residential. Statistical area includes
Brisbane City, Fairfield-Dutton Park, Fortitude Valley, Highgate Hill, Kangaroo Point, Kelvin Grove-Herston,
New Farm, Newstead-Bowen Hills, Paddington-Milton, Red Hill, South Brisbane, Spring Hill, West End and
Woolloongabba.
4
Brisbane City Council Estimate
5
Brisbane City Council, Brisbane 2012-2031 Economic Development Plan.
Economy
Queensland
The Queensland economy has continued
to outperform the rest of Australia
in recent years, averaging 4 per cent
growth over the decade to 2012-13. This
is well above the Australian average of
3 per cent, and second-highest among
Australian mainland states. Valued at
over $290 billion, Queenslands economy
is forecast to continue to grow above the
Australian average out to 2016-17.
Resources and Energy

Source: Australian Bureau of Statistics, Australian National Accounts: State,
2012-13 (Chain Volume Measures)
Source: Australian Government, Mid-Year Economic and Fiscal Outlook 2013-14;

Queensland Government, State Budget 2013-14 and Mid-Year Fiscal and
Economic Review 2013-14
In recent years, Queenslands Resources

and Energy sector has underpinned
the states economic growth, driven
predominantly by significant business
investment in major liquefied natural
gas (LNG) and coal projects. While
commodity prices have moderated since
reaching record highs in 2011, they remain
high by historical standards and the
investment pipeline for the state is strong.
In October 2013, the Bureau of Resources
and Energy Economics identified $77
billion of Queensland projects at the
committed stage (including projects
under construction) and a further $99
billion at the feasibility stage a total
pipeline in excess of $175 billion.
Major greenfield opportunities are

yet to be developed in the state
particularly the vast coal resources
of the Galilee Basin which will attract
significant infrastructure investment.
Furthermore, new opportunities will
arise for companies supplying major
mining and unconventional gas projects
as they move from the construction to
operational phase.
Brisbane will continue to form a
major hub for resources and energy
companies as these projects progress
over coming decades. The city is
home to an array of companies that
operate along the resources and energy
supply chain, including: equipment
manufacturers; technology developers;
providers of services (such as:
engineering; construction; contracting;
and drilling) as well as a vast research
and development presence made up
of government institutions, universities
and private companies.
Infrastructure
With a strong vision for the future, the
Brisbane City Council and Queensland
Governments long-term commitment
to invest in critical infrastructure
continues to transform the citys
landscape with the ongoing delivery of
new road, tunnel and rail links.
Since 2010, over $11.5 billion has
been invested in key infrastructure in
Brisbane, with significant projects under
construction or in planning worth in
excess of $8 billion.
Major Queensland Resources and Energy Projects in the Investment Pipeline

Project
Proponent
Value
Australia Pacific LNG
Origin Energy / ConocoPhillips
$24.7 billion
Queensland Curtis LNG
Queensland Gas Company
$19.8 billion
Gladstone LNG
Santos, PETRONAS, Total, KOGAS
$18.0 billion
Caval Ridge
BHP Mitsubishi Alliance
$4.2 billion
Committed / Under Construction
Hay Point Coal Terminal
BHP Mitsubishi Alliance
$3.1 billion
Wiggins Island Coal Terminal
WICET Consortium
$2.4 billion
China First Coal Project
Waratah Coal
$8.8 billion
Alpha Coal Project
GVK - Hancock Coal
$8.2 billion
Carmichael Coal Project
Adani
$7.1 billion
Kevin's Corner
GVK
$4.2 billion
Feasibility Stage
Source: Bureau of Resources and Energy Economics,

Deloitte Access Economics Investment Monitor
Major Infrastructure Projects in Brisbane

Infrastructure
Delivery
Investment
Legacy Way (Northern Link Tunnel)
2015
$1.5 billion
Kingsford Smith Drive upgrade (Stage 2 and 3)
Staged
$650 million
Under planning/ construction*
Brisbane Airport new parallel runway
2020
$1.3 billion
Bus and Train (BaT) Tunnel
2021
$5 billion
Completed
Port Connect (upgrade of the Port of Brisbane Motorway)
2013
$385 million
Airport Link Tunnel
2012
$4.8 billion
Keperra to Ferny Grove rail upgrade
2012
$100 million
Darra to Springfield rail corridor (Stage 1)
2011
$800 million
Clem Jones Tunnel
2010
$3 billion
Gateway Upgrade and Bridge Duplication
2010
$1.88 billion
Go Between Bridge
2010
$328 million
Ted Smout Memorial Bridge (Houghton Highway duplication)

Sandgate to Redcliffe
2010
$315 million
Corinda to Darra rail upgrade
2010
$189 million
Acacia Ridge rail crossing
2010
$113 million
Source: Brisbane Marketing
*Delivery date and investment for infrastructure projects under planning/ construction is an estimate only.
Brisbane Airport
Brisbane Airport, situated just 12km
from the central business district (CBD),
operates curfew-free and offers around
the-clock capacity; allowing Brisbane to
link to international networks hubbing
from cities including Dubai, Singapore
and Bangkok. The airports modern
domestic and international terminals
are linked by modern arterial roads (the
newly constructed Airport Link Tunnel)
and have a direct rail link to the CBD
and the Brisbane suburban rail network.
In 2013, Brisbane Airports 28 airline
partners handled a record 21.8 million
passengers, an average growth of 6.1
per cent per annum over the past 10
years since 2003. Australias thirdbusiest airport services 28 international
and 44 domestic destinations, with
more than 3760 scheduled direct flights
each week.
Brisbane Airport Corporation began
construction of a new parallel runway
in 2013 as part of a $1.3 billion
infrastructure investment. The addition
of the new runway will see Brisbane
Airport operate on the same level of
capacity as airports in Singapore and
Hong Kong, and upon completion in
2020 it will become the most
efficient runway system
in Australia.
Brisbane Airport Scheduled Network

Direct Destinations, YE June 2013
Destinations
International
Asia
85
New Zealand
92
Pacific
10
53
North America
21
Middle East
21
29
272
Total
Destinations
Frequency*
Domestic
Sydney
290
Melbourne
233
Canberra
56
25
598
Regional Queensland
Regional New South Wales
89
Other
10
157
Total
44
1423
Source: Brisbane Airport Corporation

*frequencies per week, one way
Airline Carriers Serving Brisbane

Asia & Middle East
New Zealand & Pacific
Australia
Cathay Pacific
Aircalin
Alliance Airlines
China Airlines
Air New Zealand
Jetstar
China Southern Airlines
Air Niugini
Qantas
Emirates
Air Vanuatu
QantasLink
Etihad
Fiji Airways
Skytrans
EVA Airways
Hawaiian Airlines
Tiger Airways
Garuda Indonesia
Our Airline (Air Nauru)
Virgin Australia
Korean Air
Solomon Airlines
Malaysia Airlines
Virgin Samoa
Philippine Airlines
Singapore Airlines
THAI International
Frequency*
Direct international routes
Seoul
Los Angeles
Abu Dhabi
Dallas
Guangzhou/Beijing
Taipei
Hong Kong
Dubai
Honolulu
Bangkok
Manila
Kuala Lumpur
Singapore
Brisbane
Auckland
Wellington
Passanger No.
*
*Excluding transit passengers
The
addition of the
new runway will
see Brisbane Airport
operate on the same
level of capacity as
airports in Singapore
and Hong Kong
Cruise Terminals
The cruise industry has experienced
consistent growth in Queensland
largely due to Brisbanes strategic
location on Australias east coast;
ideally situated just one sea-day
away from Sydney or the Whitsunday
Islands, and two sea-days from Cairns
or the Pacific island of New Caledonia.
The growing popularity of Brisbane
as a base port for the Australian
cruise industry is demonstrated by
the number of ships visiting Brisbane
between 2008-09 and 2012-13, which
saw average growth of 13 per cent per
annum. The popularity of Brisbane as
a cruise destination has increased from
approximately 150,000 passengers in
2008-09 to almost 325,000 in 2012-13;
constituting an average annual growth
rate of 21.3 per cent.
Brisbane has two cruise facilities
located at Brisbanes Portside Wharf
precinct in Hamilton and the Port of
Brisbane respectively. Portside Wharf
situated just 7km from the Brisbane
CBD is capable of welcoming ships
up to 270m in length, complete with
a state-of-the-art terminal facility. The
Port of Brisbane accommodates larger
vessels, such as The Queen Mary II.
Source: Tourism and Events Queensland
Port of Brisbane Trade, FY 2012/13

Imports
Rank*
Commodities
Exports
Country of
Origin
Rank*
Commodities
Country of
Destination
Crude oil
Global
Coal
Japan
Refined oil
Singapore
Agricultural seed
Japan
Cement
Australia
Refined oil
Australia
Iron & steel
China
Meat products
Japan
Building products
China
Cotton
China
Machinery
USA
Iron & steel
Vietnam
Source: Port of Brisbane 2014

*By tonnage
The Port
of Brisbane is
Australias fastestgrowing capital city
container port and
Queenslands largest
multi-cargo port
Port of Brisbane
The Port of Brisbane is Australias
fastest-growing capital city container
port and Queenslands largest multicargo port, handling in excess of $50
billion in global trade and over one
million containers annually.
The port offers world-class cargohandling and warehousing facilities
for containers, general cargo, motor
vehicles and bulk commodity exports
from the coal basins and agricultural
regions of southern Queensland and
northern New South Wales.
Strategically located at the mouth of
the Brisbane River and just 24km from
the citys CBD, the port comprises
7.86km of quay line, 1047ha of land
holdings and 999ha of deep water
berths and channel access.
A vital link between Australia and
overseas markets, the Port of Brisbane
is the closest major container port to
Australias largest export markets in the
Asia Pacific rim, being up to five sailing
days closer than southern ports in
Sydney and Melbourne.
The port is a critical trade hub
for Queensland, accounting for
approximately 50 per cent of the
states international trade, 95 per cent
of the states motor vehicle imports,
100 per cent of the states meat exports,
75 per cent of Australias beef exports,
and 50 per cent of Queenslands
agricultural exports.
The Port of Brisbane Pty Ltd is

responsible for the management of
the port, and in the past 20 years has
invested over $1.6 billion into port
infrastructure and assets. Today, more
than 35 shipping lines service the port,
making over 2500 ship calls each year.
The table adjacent details the top six
commodities the Port of Brisbane imports
and exports, globally and domestically.
BaT Tunnel
In a world first, Brisbane will begin
construction of an underground bus and
train project named the BaT (Bus and
Train) Tunnel, which will provide a critical
new link in South East Queenslands
public transport network. With
construction to begin in 2015, the BaT is
a new innovation in public transport, and
will be the first of its kind to combine rail
and bus networks in a single, doubledecked, 15m-wide tunnel.
The BaT will provide a 5.4km northsouth tunnel, linking Dutton Park on
Brisbanes south to Victoria Park on the
north, delivering three new stations in
high residential and commercial areas at
Woolloongabba, George St and Roma
St. Specifically, the station at 63 George
St will provide a new access point at
the southern end of the CBD, creating
greater accessibility to the new Queens
Wharf Brisbane precinct, Brisbanes
CBD and QUT Gardens Point campus.
In addition, the BaT will increase the
number of services to the CBD, including
additional express services.
Long-term strategies in
destination marketing are
being delivered with a greater
focus on attracting more
leisure and international
visitors to the city
Driving tourism demand
As the citys regional tourism

organisation and convention bureau,
Brisbane Marketing continues to work
collaboratively with industry and key
stakeholders, such as Tourism and Events
Queensland, and Tourism Australia, to
realise growth in visitation demand.
Strategic destination marketing and
business development continues to be
driven across conventions, leisure tourism
and major events to deliver growth from
international and domestic markets.
A strong corporate market has been
the major driver of demand in Brisbane.
Historically, Brisbane has attracted
15 per cent of all international leisure
visitors to Australia. During 2013
however, the city experienced growth
in both international and domestic
leisure visitors; demonstrating the
profile and popularity of Brisbane as
a leisure destination is on the rise.
With this in mind, specific long-term
strategies in destination marketing are
being delivered with a greater focus on
attracting more leisure and international
visitors to the city.
Business events
Brisbanes reputation as a worldclass destination for meetings
and conferences continues to be
strengthened with the growth and
emergence of new venues and event
services, as well as a range of highprofile international conferences. The
citys status as a meetings, incentives,
conference and exhibition (MICE)
destination of choice was further
bolstered with the announcement
Brisbane will host the 2014 G20
Leaders Summit.
During the past five

years, Brisbane has
witnessed growth across the
business events market, with
healthy increases across events,
delegates and delegate days, despite
weaker conditions in 2013. Since 2008,
total events increased by an average
rate of 7.9 per cent per annum, with
1400 events hosted in the city in 2013
compared with fewer than 1000 in 2008.
The business events market has
historically been underpinned by the
corporate sector, with 71 per cent of
total events held in 2013 hosted by
corporate organisers.
G20 Leaders Summit

It is anticipated more than 7000
visitors, including world leaders
and international media, will
descend on Brisbane for the
G20 Leaders Summit. Hosted
at the Brisbane Convention
& Exhibition Centre, the G20
Leaders Summit will put
Brisbane and its businesses
at the centre of world events;
providing opportunities
to promote tourism, build
international networks, and
highlight the talent and future
of Brisbane.
The city enjoys a host of premium

business event venues, including
Australias most-awarded convention
venue, the Brisbane Convention &
Exhibition Centre (BCEC), which
completed a $140 million expansion
in 2012 to provide a range of flexible
meeting spaces with a total capacity
of 8000.
In 2013, Brisbane welcomed two worldclass convention venues the $59
million Royal International Convention
Centre (RICC) at the Brisbane
Showgrounds, and the Brisbane City
Hall located in Brisbanes King George
Square which has undergone a $215
million restoration.
21%
22%
18%
19%
Source: Queensland Business Events Survey, Queensland Treasury and Trade
Brisbane Events, Delegates and Delegate Days

YE June
Financial Year
Events
Delegates
Delegate Days
2008
956
106,613
378,137
2009
1001
80,540
215,804
2010
1280
110,111
310,420
2011
1836
139,395
348,992
2012
2126
165,938
439,920
2013
1401
147,981
438,290
Total growth 2007-2013 (No.)
445
41,368
60,153
Total growth 2007-2013 (%)
46.5%
38.8%
15.9%
Average annual growth 2007-2013 (%)
7.9%
6.8%
3.0%
Source: Queensland Business Events Survey, Queensland Treasury and Trade
16%
14%
Brisbanes Top 10 Business Event Venues

by capacity theatre style
Total Capacity
(people)*
Meeting
Rooms
Brisbane Convention & Exhibition Centre (BCEC)
8000
44
Royal International Convention Centre (RICC)**
3200
26
Brisbane City Hall
2000
11
Hilton Brisbane
800
19
Sofitel Brisbane Central
1100
11
Pullman Brisbane King George Square
730
12
Mercure Hotel Brisbane
830
11
Royal on the Park Brisbane
700
Rydges South Bank
550
Stamford Plaza Brisbane
300
10
18,210
160
Venue
Total
A list of the citys top 10 venues

is featured adjacent, with these
venues alone having the capacity to
accommodate approximately 18,200
people across 160 meeting rooms.
Brisbane Marketings Convention
Bureau works with Brisbanes business
events industry to market Brisbane as
a leading business events destination.
The city has secured a strong calendar
of future conferences for 2014 and
beyond, some of the conferences
as outlined in the table below were
led by Brisbane Marketing and
others were led by the BCEC
and done in partnership with
Brisbane Marketing.

* approximately
** There is additional capacity across the Brisbane Showgrounds which has not been accounted for.
Secured Conferences
with more than 1000 delegates
Conference
Origin
Date
No. of
Days*
Total
Delegates*
2014 Scientific Meeting of the Asia

Pacific Association for the Study of
the Liver
International
Mar 2014
2500
2014 Congress of the Asia Pacific

Initiative on Reproduction (ASPIRE)
International
Apr 2014
1500
2014 National Band Championships
National
Apr 2014
2000
World Congress of Audiology 2014
International
May 2014
1600
International Union for Pure & Applied

Biophysics (IUPAB) 2014
International
Aug 2014
1500
Australian Woodworking Industry

Suppliers Association (AWISA)
Exhibition 2014
National
Aug 2014
4000
World Congress of International

Association of Applied Linguistics
(ALIA) 2014
International
Aug 2014
2000
XXIXth International Horticulture

Congress 2014
International
Aug 2014
3000
2014 Australian International Education

Conference (AIEC)
National
Oct 2014
1300
G20 Leaders Summit 2014
International
Nov 2014
7000
2015 ICASSP (International Conference

on Acoustics, Speech and Signal
Processing)
International
Apr 2015
1500
2015 International Scientific Meeting of

the Royal College of Obstetricians and
Gynaecologists (RCOG)
International
Apr 2015
1500
Total
29,400

*Estimate
Hotel
Hot
el In
Inv
ves
estment
tment in Brisbane
Brisbane,, Aus
Austr
tralia
alia 18
Major events
Brisbanes Top Major Event Venues

Location
Primary Use
Brisbane Convention & Exhibition Centre (BCEC)
South Brisbane
Concerts, exhibitions,
netball
Brisbane Cricket Ground (The Gabba)
Woolloongabba
International and
Twenty20 cricket, AFL
Brisbane Entertainment Centre
Boondall
Concerts
The city has a robust and wellestablished year-round calendar of

major events that successfully attract
theatre, music, art, sport and food
lovers from around Australia and the
globe. Brisbane, a sport-loving city, is
home to the Brisbane Roar, Brisbane
Lions, Brisbane Broncos, Brisbane Heat,
Queensland Firebirds, Queensland Bulls
and Queensland Reds.
Brisbane Powerhouse
New Farm
Theatre, arts and

exhibitions
Brisbane Showgrounds
Bowen Hills
Exhibitions
Queensland Tennis Centre
Tennyson
Tennis
Queensland Art Gallery/ Gallery of Modern Art
South Bank
Exhibitions
Queensland Museum
South Bank
Exhibitions
Queensland Performing Art Centre (QPAC)
South Bank
Arts, festivals, popular

entertainment
In 2015, Brisbane will play host to the

Asian Football Confederation (AFC)
Asian Cup with seven matches played
at Suncorp Stadium attracting players
and spectators from 16 nations across
the Asia Pacific region, as well as the
11th International Cricket Council (ICC)
Cricket World Cup.
River Stage, Botanical Gardens
CBD
Concerts
South Bank Parklands
South Bank
Festivals
State Library of Queensland
South Bank
Exhibitions and festivals
Suncorp Stadium
Milton
Concerts, soccer, NRL,

rugby union
Brisbane is home to an extensive

range of world-class major event
venues, which bolster the citys ability
to continue to attract premier events
that drive intrastate, interstate and
international visitors to the city.
Gallery of Modern Art

Brisbane is home to Australias
largest gallery of modern and
contemporary art, the Gallery
of Modern Art (GOMA), which
is Australias second-most
visited gallery, and the 31st
most-visited gallery in the
world, attracting more than
1.48 million visitors in 2012. The
gallerys flagship exhibition,
the Asia-Pacific Triennial of
Contemporary Art (APT), is a
major exclusive international
exhibition attracting more than
550,000 attendees.
19 Hot
Hotel
el In
Inv
ves
estment
tment in Brisbane
Brisbane,, Aus
Austr
tralia
alia
Venue
Brisbane Major Events Calendar

Event
What
Date
Venue
Brisbane
International
Tennis
January
Queensland Tennis
Centre
Queensland Reds
Rugby union
February to June
Suncorp Stadium
Brisbane Comedy
Festival
Arts festival
February to March
Brisbane
Powerhouse
Queensland
Firebirds
Netball
March to June
BCEC
Brisbane Lions
AFL
March to September
The Gabba
Brisbane Broncos
NRL
March to September
Suncorp Stadium
Anywhere Theatre
Festival
Arts festival
May
Across Brisbane
Brisbane Racing
Carnival
Horse racing
May to June
Eagle Farm
State of Origin
NRL
May to July
Suncorp Stadium
City2South
Fun run (14km)
June
CBD to South
Brisbane
International Tests
Rugby union
June-SeptemberOctober
Suncorp Stadium
Regional Flavours
Food festival
July
South Bank
Royal Exhibition
(EKKA)
Agricultural
exhibition
August
Brisbane
Showgrounds
Brisbane Festival
Arts festival
September
South Bank
September
Gateway Bridge
to Brisbane
Showgrounds
Bridge2Brisbane
Fun run (5km &

10km)
Queensland Bulls
Cricket
October to March
The Gabba
Brisbane Roar
Soccer
October to March
Suncorp Stadium
International Test
Cricket
November
The Gabba
Asia Pacific Screen

Awards
Screen awards
December
Brisbane City Hall
Christmas
Parade and
lightshow
December
South Bank and CBD
Brisbane Heat
20/20 cricket
December to
January
The Gabba
Asia Pacific Screen Awards

Brisbane is host to the
internationally televised Asia
Pacific Screen Awards (APSA),
with hundreds of film industry
practitioners from Asia Pacific
attending to witness the
regions highest accolade in
film. The Asia Pacific Screen
Awards recognise and promote
the cinematic excellence and
cultural diversity of the worlds
fastest-growing film region,
comprising 70 countries and 4.5
billion people.
To find out more visit
asiapacificscreenacademy.com
The city has

a robust and wellestablished year-round
calendar of major events
that successfully attract
theatre, music, art, sport and
food lovers from around
Australia and the
globe
Brisbane
City Council and
Queensland Government
have continued to reinforce
their commitment to tourism,
taking an active role in
the facilitation of new
world-class tourism
infrastructure
Brisbane is home to a number of

established and emerging retail,
entertainment and dining precincts
which drive significant visitation from
intrastate, interstate and international
visitors, such as:
South Bank
Queen Street Mall
Barracks and Caxton Street at
Petrie Terrace
Gasworks in Newstead
Boundary Street in West End
James Street in Fortitude Valley
Brunswick Street Mall and China
Town Mall in Fortitude Valley
Emporium in Fortitude Valley
Logan Road and Stanley Street in
Woolloongabba
Portside in Hamilton.
These core precincts have continued
to evolve and establish themselves as
leading destinations, with the future
evolution of the CBD largely driven by
a clear and strategic vision as outlined
by Brisbane City Council in the new
Brisbane City Centre Master Plan.
In addition, the Brisbane City Council
and Queensland Government
have continued to reinforce their
commitment to tourism, taking an
active role in the facilitation of new
world-class tourism infrastructure
on state and local-owned land. In
particular, the Brisbane City Council
and Queensland Government identified
and released land to the private
development industry, with major
projects mooted at Queens Wharf
Brisbane and Howard Smith Wharves
that will redefine and enhance the
CBD offering.
Further development of tourism

infrastructure continues to be
underpinned by the Queensland
Governments focused and proactive
approach, with tourism being identified
as a key pillar of the Queensland
economy. In addition, the Queensland
Government has committed to doubling
visitor expenditure to $30 billion under
the national Tourism 2020 plan.
Blueprint for precinct

evolution
The new Brisbane City Centre Master
Plan was developed in 2013 by
Brisbane City Council to ensure the
city has a clear vision and strategy on
which to capitalise, and the ability to
seize investment and development
opportunities. The master plan delivers
a coordinated framework for future
precinct development, and sets out
five key strategies to guide future
development, transport and public
space investments. The key strategies
underpinning the master plan include:
1. Economic development Brisbane
is open to investment and geared
for prosperity.
2. Public realm in Brisbane we enjoy
the open air.
3. Built form in our city every
building is beautiful.
4. Social and cultural discover our
urban playground.
5. Transport our city centre is
a special place where people
move freely.
To kick-start the transformation of

the city centre, Brisbane City Council
announced a number of priority
projects, to be delivered by 2018, which
will revitalise the city. These projects
include Howard Smith Wharves and
Queens Wharf Brisbane, as well as:
Edward St Edward St is
establishing itself as Brisbanes
home for international luxury brands.
Brisbane City Council is committed
to supporting this investment by
transforming it into a world-class
retail environment with broad
footpaths, tree-lined street and
beautiful buildings.
Albert St Albert St will become
Brisbanes green spine, embodying
Brisbanes subtropical climate
and outdoor lifestyle. This street
will serve as a leafy boulevard
connecting the City Botanic
Gardens, King George Square and
Roma Street Parkland.
CityGlider network A bus network
will be developed to connect
Brisbanes growing inner-city
neighbourhoods, major employment
hubs and cultural destinations to
allow workers, residents and tourists
to move quickly, frequently and
conveniently across the city.
South Bank
South Bank is the cultural and
entertainment heart of Brisbane. Spread
across 42ha, South Bank offers leisure,
culture, dining and recreation space
for the enjoyment of locals and visitors
alike. Located just a few minutes from
Brisbanes CBD, South Bank is divided
into four main precincts: Grey Street;
Little Stanley Street; the Parklands;

and River Quay. With over 1500m of
uninterrupted Brisbane River frontage,
South Bank attracts more than 10
million visitors each year and is where
the city celebrates key events such as
New Years Eve, Australia Day, Brisbane
Festival and Regional Flavours.
With more than 14,000m2 of retail
and commercial space, South Bank
offers unique and world-class dining
and retail experiences.
Queen Street Mall

Regarded as the most successful
pedestrian mall in Australia, the Queen
Street Mall is a 500m pedestrian-only
street in the centre of the Brisbane
CBD. The mall houses approximately
700 retailers, including six major retail
centres and over 142,000m2 of retail
area6, drawing 26 million visitors each
year and driving a total annual turnover
of approximately $930 million.
The Queen Street Mall attracts shoppers
and tourists and acts as the retail heart
of the city, with free music and theatre
performed year-round. Its success is
evident with vacancy rates of only 2.4
per cent7, with the mall recently being
ranked number seven in the top 10
highest retail rents in the Asia
Pacific region8.
Queens Wharf Brisbane

In 2013, the Queensland Government
announced the issue of a new casino
licence for Brisbane, and the once-in
a-generation opportunity to redevelop
a unique precinct, known as Queens
Wharf Brisbane, in the heart of
Brisbanes CBD.
Retail is defined by the Australian Bureau of Statistics. The definition excludes the following tenancy types:
Amusements/Entertainment, Appliance Rental, Auto Accessories, Banks and Building Societies, Cinemas,
Equipment Hire, Financial and Property Services, Gyms, Garden Supplies, Lottery & Gaming, Marine
Equipment, Medical and Dental Services, Offices, Post Office and Travel Agency. For the purpose of this
report vacant tenancy areas have been included.
7
Colliers International, Retail Research and Forecast report, Second Half 2013
8
Colliers International, Global Retail Highlights 2013
6
Queens Wharf Brisbane is a prime CBD

precinct with more than 9ha of land and
700m of Brisbane River frontage.
The opportunity exists for this
brownfield precinct to be redeveloped
to deliver an integrated resort that
includes a casino, six-star hotel, retail,
food and beverage, and entertainment
and convention facilities.
Subject to negotiations with the winning
bidder, the new precinct is scheduled to
begin construction in 2017 with stage
one anticipated to be completed by
2020, providing the city with a new
and unique entertainment precinct that
will continue to drive greater leisure
and corporate visitation from both the
domestic and international markets.
Howard Smith Wharves

In 2013, Brisbane City Council released
a Request for Proposals (RFP) seeking
bids from the private sector to
redevelop prime riverfront land between
Brisbanes CBD and New Farm known
as Howard Smith Wharves (pictured
below). As part of the RFP process,
Brisbane City Council encouraged
proposals that sought to reactivate
and renew the under-utilised 3.43ha
site and deliver high-quality public
space back to the city, including worldclass retail, food and beverage, and
recreational offerings.
Subject to negotiations with the

winning bidder, Howard Smith Wharves
will provide Brisbane with an additional
dining and recreational precinct for
both locals and visitors to enjoy.
Kurilpa Riverfront
Brisbane City Council and the
Queensland Government are working
together on the renewal of the Kurilpa
Riverfront precinct to facilitate the
redevelopment of prime riverfront
industrial land in South Brisbane.
This unique precinct comprises
approximately 1km of river frontage
and more than 25ha of land, and will
be the largest renewal opportunity in
Brisbane since the Teneriffe waterfront
revitalisation in the mid to late 1990s.
The master plan, scheduled to be
finalised and endorsed in mid-2014,
is set to provide a clear vision that
delivers greater developer certainty.
The planning process is currently
exploring the potential for a mix of
high-quality commercial, retail and
residential development, along with
significant new public spaces and
enhanced streets. It has the potential to
deliver an additional recreational, dining
and retail precinct for the enjoyment of
locals and visitors alike.
Strong demand
The tourism industry in the Brisbane

City Council area contributes more
than $3.3 billion to the Gross Regional
Product, employing 21,100 people
in Brisbane. The hotel sector is
the industrys highest contributing
employer, employing 9400 people.
With a robust Queensland economy
attracting more and more business
and international visitors to the capital,
Brisbane continues to evolve as a
destination of choice for travellers.
With growing demand, full-service
branded hotels will play a vital role in
defining Brisbane as a truly world-class
destination, providing much-needed
amenity, service and character to
the city.
Purpose of visit
In 2013, business travellers continued to
be the most dominant demand-driver
for hotels, accounting for 45.5 per cent
of the hotel visitor market. Despite
demand from business travellers
flattening compared to the peak of
2008 (at 50.9 per cent), business
travellers continued their pilgrimage,
driven by buoyant economic conditions
and improving business sentiment.
The city also enjoyed strong growth
from holiday and leisure travellers
who in the immediate wake of the
global financial crisis had tightened
their discretionary spend and stayed
away. For the first time, holiday and
leisure travellers have returned to the
city in record numbers as confidence
rebounds, with Brisbane welcoming
more than 650,000 tourists in the
year ending September 2013
an increase of 16.8 per cent over the
previous 12 months and the highest
number ever accommodated.
Visitor origin
Source: Tourism Research Australia
Brisbane welcomed more than 750,000

international visitors in 2013, 6.9 per
cent more than the previous 12 months.
China continued to be Brisbanes
strongest international inbound
segment for the second year running,
accounting for approximately 130,000
international visitors or 17.3 per cent of
total international visitation. Brisbane
has continued to attract and appeal to
Chinese visitors, with visitation increasing
by 20.2 per cent since 2012, a far cry from
only five years ago when just 50,200
Chinese nationals visited Brisbane.
More than 53 per cent of all

international visitors in 2013 came
from affluent and rising markets
including the United Kingdom, New
Zealand, the US, China and Germany.
This demonstrates the need for
Brisbane to continue to deliver superior
infrastructure and service to ensure
repeat and new visitation.
Visitor expenditure
Visitors to Brisbane spent more than
$6.1 billion in 2013; an increase of 3.4
per cent over the past 12 months.
Domestic overnight visitors are the
largest contributor spending $3.2
billion (52.7 per cent), followed by
international visitors who spent more
than $1.5 billion (25.1 per cent).
The growth in demand for hotel nights

by business and international travellers is
helping boost expenditure, both in hotels
and the broader economy. Overnight
visitors unlock significantly higher spend
than day trippers, spending 16 times
more, often in the hotels in which they
stay. Domestic overnight visitors spend
six times more than day trippers, again
demonstrating the economic value
driven by overnight stays.
Visitor nights
With 4.3 million visitor nights in hotels
in 2013, international visitor numbers
continued to grow for the third
consecutive year, with the proportion
increasing to 33.2 per cent of total
visitor nights to over 1.4 million.
Average Length of Stay (No. of Nights)
Domestic overnight visitors remain

the largest segment, comprising
66.8 per cent of total visitor nights.
However, domestic visitors declined
for the second consecutive year to 2.8
million visitor nights. This decline has
been largely attributed to Australians
continuing to exercise restraint around
discretionary spend, as well as being
lured overseas by cheaper offerings
underpinned by a strong Australian
dollar. With the fall of the Australian
dollar and strengthening business
conditions, it is expected confidence will
return to the domestic overnight visitor.
International overnight visitors continue
to be a focus for hoteliers in the city,
not only because they spend twice
that of domestic overnight visitors,
but also because they stay longer. On
average, the length of stay in hotels by
international visitors is 3.9 nights, up
from 3.0 nights in 2000.
China continued to
be Brisbanes strongest
international inbound
segment for the second
year running
The Brisbane City hotel market,

which includes serviced apartments,
has experienced strong growth since
the global financial crisis, with steady
and consistent increases in room rates
and occupancy.
In 2013, the city witnessed weaker
trading conditions, but historically
speaking maintained a relatively modest
occupancy rate of 77.4 per cent. The
weaker trading conditions have largely
been attributed to a decline in domestic
overnight visitors, with interstate
leisure visitors exercising constraint
with discretionary spend or choosing
to travel abroad where they saw
greater value for money with a stronger
Australian dollar. Business and corporate
travellers, on the other hand, remained
largely cautious as they awaited the
outcome of the September 2013
Federal Election.
Early signs already demonstrate
business and consumer confidence
is returning, with strong indicators
recorded recently. Both retail spending
and building approvals posted solid
gains over the latter half of 2013,
suggesting a more buoyant consumer
outlook for 2014. A recent business
confidence survey by Dun & Bradstreet
found a vast majority (68 per cent)
of Australian businesses expecting
improved growth in 2014 compared
with 2013.
From a national hotel trading
perspective, Brisbane performed
above the Australian average to be the
fourth-best performing hotel market in
Australia. Deloitte Access Economics
forecast moderate growth, with room
rates forecast to grow by 4.1 per cent
per annum to December 2015, and
RevPAR expected to grow by 4.0 per
cent per annum.
Source: STR Global
Source: STR Global
From a national
hotel trading
perspective, Brisbane
performed above the
Australian average to be the
fourth-best performing
hotel market in
Australia
Trading by sub-market
Hotel Trading Performance, Brisbane City Core
The Brisbane City hotel market is

predominately made up of five main
sub-markets: the CBD, Fortitude Valley,
Kangaroo Point, South Brisbane and
Spring Hill.
The CBD is the most prominent of the
sub-markets, accounting for 61.7 per
cent of the total room supply. While
the CBD area generates the greatest
average room rates at $206, South
Brisbane competes well with the
CBD, achieving occupancy of 81.2 per
cent and average room rates of $205.
Hoteliers in South Brisbane, who enjoy
close proximity to the states leading
entertainment and cultural precinct,
enjoyed average annual RevPAR growth
of 5.0 per cent in the past six years
since 2007.
Since 2007, Fortitude Valley witnessed
the greatest growth in new supply with
an increase of 47.1 per cent, or 146 new
rooms into the market. Despite this, the
market has effectively absorbed the
new supply, recording average annual
growth in room rates of 6.7 per cent to
$183 for the year ending June 2013.
Trading by star category

Brisbanes five-star hotels have
continued to enjoy strong rate premiums
over four and three-star rated assets. As
at the year ending June 2013, five-star
hotels achieved an ADR and RevPAR of
$263 and $206 respectively, with room
rates and revenue 39 and 43 per cent
higher compared with four-star hotels.
In the past six years to 2013, five-star
hotels also enjoyed the greatest increase
in ADR and RevPAR, with average
annual growth of 4.0 per cent for
ADR from $214 and 3.3 per cent for
RevPAR from $175.
Source: Australian Bureau of Statistics
Room to grow
As at June 2013, there were 9281 hotel

rooms in the Brisbane City Core market,
which includes hotels, motels and serviced
apartments.
Room supply increased by an average
annual rate of 3.3 per cent since 2006.
The greatest growth in supply was injected
between 2006 and 2008, with more
than 1500 rooms entering the market
making up 82 per cent of total new supply
since 2006.
However, since 2010, hotel developments
have failed to keep pace despite demand
continuing to grow. Since 2010, Brisbane
has had only minor additions to room
supply, with just 330 rooms added
representing 0.9 per cent growth per
annum. This is not withstanding a 4.9 per
cent increase in demand (expressed in total
visitor nights), an 8.9 per cent increase in
ADR, and a 6.3 per cent increase in RevPAR
since 2010.
Source: Australian Bureau of Statistics and AECGroup
Hotels versus serviced

apartments
Brisbane has seen a widening gap between
full-service branded hotels and serviced
apartments. The proportion of serviced
apartments has grown rapidly since 2006.
Seventy-six per cent of the total room
supply growth experienced in Brisbane
has come from residential apartment
buildings transitioning into the short-term
accommodation market. Despite hotels
dominating total room supply in Brisbane,
serviced apartments operating in the shortterm accommodation market grew from
27.5 per cent to 37.5 per cent since 2006.
Since 2006, serviced apartments
experienced growth in supply of 71.2 per
cent (or 2052 rooms) compared to just
8.7 per cent (or 659 rooms) for hotels.
The unprecedented growth in serviced
apartments has been at the expense of
traditional hotels, with only 1.7 hotel rooms
to every serviced apartment operating
in the market in 2013, compared with 2.6
hotel rooms for every serviced apartment
in 2006.
Since 2010,
Brisbane has had
only minor additions
to room supply, with
just 330 rooms
added
Supply by star category

Five-star hotels operating in the market
shed 568 rooms since 2006, a drop of
29.8 per cent. Three-star hotel supply
on the other hand saw an increase of
3.0 per cent in room stock, and four-star
hotel supply increased by 55.7 per cent
in the same period.
Conversely, when compared to
other capital cities including Sydney,
Melbourne, and Perth, Brisbane has a
proportionally higher volume of fourstar hotel products, attributed to the
strong increase in serviced apartment
product that mostly operates in the
four-star rating category.
Room Supply by Star Class

Brisbane Tourism Region, YE June
Room Supply (No.)
3 Stars
4 Stars
2006
3626
4932
1907
2007
3684
5293
1903
2008
4041
6342
1686
2009
4048
6841
1695
2010
4069
6865
1836
2011
3807
7343
1337
2012
3803
7588
1337
2013
3735
7681
1339
Growth 2006-2013 (No.)

Growth 2006-2013 (%)
5 Stars
109
2749
-568
3.0%
55.7%
-29.8%
The Four Points by Sheraton hotel,

which opened its doors in March 2014,
is the only new purpose-built,
full-service branded hotel to have
entered the market in Brisbanes CBD
since 1998, leaving a significant gap in
product type and quality to service the
growing demand.
New hotel supply

Despite years of no new supply,
Brisbane will finally enjoy new quality
hotel stock as it enters the market
in 2014, with international operators
such as Starwood, Wyndham and
SilverNeedle establishing a presence.
The new supply is anticipated to
improve the quality of rooms on offer,
with refurbishments of existing supply
likely to occur as a result.
2.3%
3.3%
2.2%
Brisbane Hotel Development Pipeline

Property
Location
Four Points by
Sheraton
103 Mary St,

Brisbane
Alpha Mosaic
Brisbane
826-844 Ann St,

Fortitude Valley
TRYP Hotel
Hotel
Rooms
Opening Date*
Operator
March, 2014
Starwood Hotels
& Resorts
51
Q2, 2014
Alpha Hotels &

Resorts
20 Constance St,
Fortitude Valley
65
Q2, 2014
Wyndham Hotel
Group
Gambaro Hotel
29-39 Caxton St,

Petrie Terrace
63
Q2, 2014
The Gambaro
Group
NEXT Hotels &

Resorts
66 Queen St,
Brisbane
150
Q3, 2014
SilverNeedle
Hospitality

*Estimate
4.4%
246
Future sustainable supply

Brisbanes reputation as Australias new
world city is underpinned by strong
investment from both local and state
governments who are committed to
growing demand from leisure, business
and events, and international markets.
As Brisbane continues to transform into
a leading cultural and economic hub,
coupled with growth from Chinese and
leisure visitors alike, the city is forecast
to generate strong demand for worldclass hotels into the future.
With an estimated 278,000 room nights
being deferred annually, the city is
potentially forgoing more than 121,000
international and domestic visitors who
on average stay 2.3 nights in the city.
As a result, it is projected the city is
deferring nearly $140 million in visitor
expenditure, or $1150 per visitor.
Future Room Supply

Brisbane City Core
2013-2022
Scenario
Average Annual Increase

in Rooms
Base Demand*
216
Target Demand**
330
Source: AECGroup
* The Base Demand scenario relates to the level of demand

that would be expected in the future based on current and
future anticipated economic activity.
** The Target Demand scenario represents a conceivable
and achievable stretch target based on effective marketing,
events and other demand drivers to increase level of
demand into the future.
This deferred economic benefit is

largely attributed to insufficient supply
of internationally branded hotels, which
in turn is hampering Brisbanes ability to
attract major events and conferences.
This lost visitor expenditure equates
to approximately 1100 jobs and $144
million in economic activity that would
otherwise exist.
More branded hotel rooms are therefore
required to meet this demand, and to
enable the city to procure new worldclass major business events. Leading
economic consultants AECGroup
estimate Brisbane can sustainably
absorb between 216 to 330 rooms
annually to 2022, allowing the city to
increase its capacity and capture more
leisure and international visitors arising
from markets such as China.
Brisbane
can sustainably
absorb between
216 to 330 rooms
annually to 2022
Pro-business government
The Brisbane City Council and

Queensland Government are
determined to work together to
attract more domestic and international
visitors to the city. Both local and
state governments recognise the
importance of hotel infrastructure and
the inherent value hotel developers,
operators and investors add to building
and defining the landscape of Brisbanes
tourism offering.
Combined, the Brisbane City Council and
Queensland Government are committed
to attracting investment to develop
sustainable, full-service branded hotel
supply that underpins Brisbane as a
world-class destination. Queenslands
pro-business economic environment and
forecast growth offers investors a safe,
long-term investment climate within a
stable and resilient economy.
The Queensland Government continues
to implement tighter economic and fiscal
disciplines, including changes to payroll
tax, reduction in bureaucratic red tape,
and abolition of the waste levy. This has
created a pro-business environment
that has witnessed the return of strong
business confidence levels not seen since
prior to the global financial crisis. Equally,
Brisbane City Council has continued to
adopt a pro-development stance, aiming
to provide investors with the greatest
level of confidence to progress with
investments and developments.
By investing in Brisbane, you will
benefit from:
Largest local government

The City of Brisbane is governed by the
Brisbane City Council, the largest local
government in Australia. Unlike other
local governments across the country
(such as Sydney, Melbourne and Perth),
which are generally responsible only for
the CBD areas of those cities, Brisbane

City Council administers a:

Budget of $3.11 billion
Population of over one million
Metropolitan area of over 1300km2
Investors to Brisbane will benefit from:

Dealing with one single local

government regulatory authority
Consistent planning regulations and

infrastructure charges
Clear vision and strategy to guide

future development and investment
A coordinated infrastructure
delivery agenda

Major centres, beyond the CBD,

which are part of the same
local government.
Attracting Aviation
Investment Fund
Improving aviation access is a key priority
for Queensland, in particular new airline
routes within growth markets such as
Asia. To boost the Queensland tourism
industry and attract more international
visitors, the Queensland Government
established the Attracting Aviation
Investment Fund with $8 million of
committed funding.
The Attracting Aviation Investment Fund
has already resulted in new international
flights being secured for Queensland
including:
China Eastern commencing a direct
seasonal service between Shanghai
and Cairns
Air New Zealand operating a
twice-weekly Auckland to Sunshine
Coast service
AirAsia increasing its Kuala LumpurGold Coast route to daily flights
Emirates Airline upgrading to a daily A380

service into Brisbane.
In addition, confidence in the Brisbane market
is demonstrated by increased airline capacity:
Garuda Indonesias daily flights from
Denpasar to Brisbane
Etihad Airways increasing services
between Abu Dhabi and Brisbane to daily
Hawaiian Airlines new Brisbane to
Honolulu service with flights steadily
increasing throughout 2013
China Southern Airlines daily service
between Guangzhou and Brisbane
Qantas increasing to daily services
between Brisbane and Hong Kong
Malaysia Airlines increasing frequency
between Kuala Lumpur and Brisbane to
five services per week
Philippines Airlines resuming services to
Brisbane, operating a three-times-weekly
service from Manila
Virgin Australia commencing services on
the Brisbane-Bundaberg route
Tiger Airways opening a Low-Cost Carrier
base at Brisbane Airport with extra
services to Sydney and Melbourne and
new flights to Adelaide, Darwin and Cairns
contribute to the citys growth

as a destination and attract more
international tourists.
Moratorium on council
infrastructure charges
To incentivise and focus on securing new
hotel supply to Brisbane, Brisbane City
Council announced a moratorium on council
infrastructure charges for new four and fivestar hotel developments approved before 30
June 2014; with building work to begin within
two years of approval.
Council normally levies infrastructure charges
to help pay for drainage, transport and park
infrastructure as part of the development
assessment process. Council recognises and
supports the integral value new hotel supply
will contribute to Brisbanes economic growth.
Competitive business costs in

Queensland
Businesses in Queensland enjoy competitive
running costs, offering a strong destination
choice for operating and investing in a hotel,
with benefits including:
Low business taxes (including the lowest
rate of payroll tax in Australia)
Competitive labour costs
Competitive utility costs
Jetstar Airways commencing non-stop

flights from Brisbane to Denpasar.
Low workers compensation premiums.
Tourism 2020
Lowest payroll tax
In recognition of the importance of tourism

to the Australian economy, in 2009 the
Australian Government set a challenge
and goal for the tourism industry and state
governments to double overnight visitor
expenditure by 2020. In support of this
national agenda, the Queensland Government
has committed to doubling overnight visitor
expenditure from $15 billion to $30 billion by
2020. To achieve this target, the Queensland
Government continues to support the
development of branded hotels which
At just 4.75 per cent, Queensland companies

pay the lowest rate of payroll tax in Australia,
having been assessed as being 20 per cent
below the national average. Payroll tax is
not required to be paid until the total annual
wages and salaries of a company exceed
$1.1 million. In addition, the Queensland
Government has committed to raising this
threshold by $100,000 each financial year for
the next five years.
Thinking of investing?
In partnership, the Brisbane City Council

and Queensland Government will actively
facilitate new investment to realise the
sustainable development of full-service
branded hotel supply in Brisbane.
This will involve:
Streamlined approvals at both state and
local government level
Case managers from both state
government and Brisbane Marketing to
assist investors, developers and operators
to navigate the approvals process
Who to talk to
Brisbane Marketing
Brisbane Marketing, the citys economic
development board, is leading activities
to attract hotel investment that defines
Brisbane as a world-class destination.
Brisbane Marketing offers critical
introductions, market knowledge
and assistance with business case
development. Investors, developers and
operators are encouraged to contact:
Use of supporting legislative powers to

help expedite developments
Oriana Wyrozebska
Manager, Investment Attraction (Hotels)
E: owyrozebska@brisbanemarketing.com.au
P: +61 7 3006 6289
Providing critical information and

introductions for those considering new
hotel development
Department of Tourism, Major Events,

Small Business and
the Commonwealth Games
Incentives including moratorium on council

infrastructure charges and potential
release of government-owned land
The Department of Tourism, Major Events,

Small Business and the Commonwealth
Games has established a Tourism
Investment Attraction unit to attract new
investment into the visitor economy. The
unit provides a one-stop-shop for hotel
development proposals for the Queensland
Government. Investors, developers and
operators are encouraged to contact:
Continuing to attract new events to

build visitation on weekends, helping fill
the shoulder period for hotels.
Further opportunities for the private
sector may become available as the
state government looks to optimise its
land holdings. The state government
will continue to undertake property
transactions in an open and accountable
manner, pursuing public competition
processes that obtain full commercial
returns. In exceptional circumstances,
the government will consider off-market
transactions where it can be demonstrated
it is practically necessary and commercially
advantageous to the state.
Dominic Ward
Director, Product Development and
Partnerships (Tourism)
E: dominic.ward@dtesb.qld.gov.au
P: +61 7 3333 5273
Department of State Development,

Infrastructure and Planning
The Department of State Development,
Infrastructure and Planning provides timely
assistance and delivery of infrastructure,
land and other property to industry and
the community. It focuses on significant,
complex and high-profile projects to
maximise state development benefits,
manages property and infrastructure
assets and provides assistance to industry
with project facilitation, red and green tape
reduction and planning support.
Visit www.dsdip.qld.gov.au
Testimonials
SilverNeedle was attracted to Brisbane

by the ease with which you can interact
with government authorities through
Brisbane Marketing and Brisbane City
Council. We believe that Brisbane is
making all of the right moves take for
example the G20 meeting that is coming
in 2014 now thats a huge win for
Brisbane as far as I am concerned.
Iqbal Jumabhoy
Managing Director and Group CEO,
SilverNeedle Hospitality
The Queensland Government and

Brisbane City Council have been
immensely helpful and collaborative
every step of the way and we are very
grateful for it. Amongst other factors,
this unwavering support throughout
the development planning process has
further reinforced our view that Brisbane
is a great place for us to
invest in, and develop our first hotel
residence property.
Choe Peng Sum
CEO, Frasers Hospitality
Appendix
Glossary
Notes
ADR
Average Daily Rate
Australian dollars
All monetary amounts have been
quoted in Australian dollars.
AFL
Australian Football League
CBD
Central Business District
FY
Financial Year
G20
The group of 20 major economies
comprising Argentina, Australia, Brazil,
Canada, China, European Union, France,
Germany, India, Indonesia, Italy, Japan,
Mexico, Russia, Saudi Arabia, South Africa,
South Korea, Turkey, United Kingdom and
United States
LGA
Local Government Area
LNG
Liquefied Natural Gas
MICE
Meetings, incentives, conference and
exhibition
NRL
National Rugby League
QUT
Queensland University of Technology
Brisbane City Core

The Brisbane City Core statistical area
includes the Brisbane Central Business
District and inner-city suburbs including
Bowen Hills, Dutton Park, East Brisbane,
Fortitude Valley, Herston, Highgate Hill,
Kangaroo Point, Kelvin Grove, Milton,
New Farm, Newstead, Paddington, Red
Hill, South Brisbane, Spring Hill, West
End and Woolloongabba.
Brisbane Local Government Area
Brisbane Local Government Area
(LGA) is the Brisbane City Council
administration boundary for local
service provision.
Brisbane Tourism Region
The Brisbane Tourism Region
statistical area includes the South East
Queensland region including Brisbane,
Caboolture, Kilcoy, Gatton, Ipswich and
Logan. It excludes the Gold Coast and
Sunshine Coast regions.
Greater Brisbane Region
Great Capital City Statistical Area
made up of Brisbane, Ipswich, LoganBeaudesert and Moreton Bay as defined
by the Australian Bureau of Statistics.
RevPAR
Revenue per available room
RNS
Room Nights Sold
The Gabba
Brisbane Cricket Ground, Woolloongabba
YE
Year Ending
Notes
Disclaimer
Except for any liability that cannot be excluded by law, the Department of Tourism, Major Events, Small Business and the
Commonwealth Games (DTESB) Queensland, and Brisbane Marketing Pty Ltd, disclaims and shall not accept, nor bear, any
liability whatsoever, for any reliance on the contents and suitability of this Guide, either in hardcopy or as presented online, for
any purpose (including without limitation special, indirect or consequential damages and damages resulting from loss of use,
data or profits, whether in an action of contract, negligence or tort, arising out of, or in connection with, the use, inability to use
or performance of the Guide). The user accepts sole responsibility and risk associated with the use and results of this Guide.
2014 State of Queensland and Brisbane Marketing Pty Ltd ABN 86 094 633 262
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O a k la nds P de
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Department of Tourism, Major Events, Small Business and the Commonwealth Games
Level 20, 111 George St, Brisbane, Qld 4001
PO Box 15168, City East, Qld 4002
T + 61 7 3333 5284
E investment@dtesb.qld.gov.au
W business.qld.gov.au/tourism-investment
Brisbane Marketing
Level 8, Roy Harvey House, 157 Ann St, Brisbane City, Qld 4000
PO Box 12260, George St, Brisbane City, Qld 4003
T +61 7 3006 6200 F: +61 7 3006 6250
E invest@brisbanemarketing.com.au
W investbrisbane.com.au/hotels

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A guide to

Lord Mayors Foreword

Why invest in Brisbane hotels

Brisbane Australias premier hotel

Resources and Energy

Driving tourism demand

Robust trading conditions

Trading by star category

Hotels versus serviced apartments

Supply by star category

New hotel supply

Future sustainable supply

01 Hotel Investment in Brisbane, Australia

As part of our commitment to the

Excitingly, in November 2014, the

Hotel Investment in Brisbane, Australia 02

Lord Mayors Foreword

03 Hotel Investment in Brisbane, Australia

This event, and the 7000 delegates and

Hotel Investment in Brisbane, Australia 04

Why invest in Brisbane hotels

Brisbanes status as Australias dynamic

More than $75 billion worth of resources

the 2014 G20 Leaders Summit. With the

Growing tourism demand

new world city was further bolstered by

worlds eyes on Brisbane, there is no better

The local, state and federal government,

Excellent economic fundamentals

Brisbane is home to a number of

With more than 45 per cent of Queenslands

Development and release of a new city

Brisbanes economy is forecast to grow

Home to leading dining, entertainment

Population of over two million, expected

Strong commitment from both local

The Brisbane hotel market is rich with

World-class infrastructure driving

05 Hotel Investment in Brisbane, Australia

Robust trading conditions

Growth in capacity is required to enable

Hotel Investment in Brisbane, Australia 06

07 Hotel Investment in Brisbane, Australia

Brisbane Australias premier

hotel investment destination

Brisbane, Australias new world city,

is an economic powerhouse and

the tourism and business hub of

Queenslands capital, the City of

Queensland. With a population of

As the closest capital city on the

performance, highly skilled and creative

Brisbane Key Statistics

Population 2031 (forecast)2

Population growth (per

Total floor space 2011 (m2)3

Total projected floor space

Value of economy 20134