The austere format of the Mega Shopping Centre is undergoing radical change in design and facilities. A valuable extension to facilities is the addition of “Centels” the luxury international standard hotel accommodation within the centre. The transition from the old generation to the new generation opens the door to embrace the synergies that luxury accommodation will add to the profile and facilities of the new concept shopping centre.
“Manchise” is a buzz word comprising of ‘management’ and ‘franchise’ an excellent model should the expertise and infrastructure be available to investors. There is a variety of management formula and terminology that have evolved over the past decade due to the trends and the structural changes in the hospitality accommodation sector.
Investment is returning to the commercial accommodation sector with NSW, QLD and WA showing the most activity as growth follows demand. The Peloton has got the message and we are seeing developers and investors joining the chase for appropriate sites and locations. As always, location is an essential ingredient in successful project development and especially in the hospitality sector. Over the past decade development activity has been minimal, however with demand now exceeding supply across most of the nation’s CBD’s and prime regional areas the next generation development cycle is commencing.
In 2008 the GFC was a catalyst for change both positive and negative. The commercial accommodation sector was the recipient of the benefits of change. Hotels especially have undergone many innovative changes for the better. New brands, new operators, new trading formula and new styles have re-vitalised the hotel industry. The “Essential Service” model is the big winner, with its effective designs offering better site utilisation and new construction techniques getting the product to market earlier.
Over the past decade there has been minimal development in the commercial accommodation sector and in particular hotels across all Australian cities. It can be said that the majority of all capital city accommodation development has been in the Serviced Apartment segment. Market dynamics that prevail at this moment see demand exceeding supply in Capital Cities and major regional centres.