Tourism Asset Holdings (TAHL) has increased its dominance of the local market by purchasing 12 properties from Accor Asia Pacific Corporation (AAPC) as part of a lease transaction.  This means that AAPC has exited the Top Ten list after just one year, allowing Daikyo to regain its position as the 10th largest owner of hotel property in Australia.

Apart from AAPC�s departure and Daikyo�s re-entry, the composition of the Top Ten list remains the same as last year.  �The survey results highlight the relatively inactive hotel investment market of the past year.  Compared to 2000, when a spate of acquisition and development activity resulted in a 17% increase in the number of rooms owned by the Top 20 companies, the local market has been relatively untouched by more recent global merger and acquisition activity and many Australian markets have completed the development phase of their cycle,� said Mr Geordie Clark, Executive Vice President, Jones Lang LaSalle Hotels.

Once again, Australian owned Grand Hotel Group and Thakral Holdings Limited have taken 2nd and 3rd place respectively with 3,255 and 2,935 rooms.  In fact, the only order change came from UK- based Six Continents Hotels and Resorts, who, through their acquisition of Canberra Parkroyal, has overtaken Singaporean Stamford Land Corporation (formerly Hai Sun Hup) to become Australia�s 4th largest owner of tourist accommodation.  

Looking at the major hotel sales of 2001, Australian hotel investors have actually increased their share of the local hotel market.  All but three of the 13 hotels sold during 2001 were purchased by domestic investors, while only 28.8% of the sales represented Australian vendors.

Commonwealth Property Hotel Fund was a major player during 2001.  As a result of the acquisition of Rockman�s Regency in Melbourne and the Renaissance Hotel, Sydney the fund has jumped from 73rd position to 13th position.

�Whilst domestic investors and owner/operators have dominated transaction activity in recent years, we anticipate a turnaround next year� said Mr Clark.   �The perception is that many Australian hotel markets are at the bottom of the hotel cycle and it is therefore considered a good time to buy.  This, combined with the value of the Australian dollar has resulted in renewed enthusiasm from overseas investors.  We are receiving strong enquiry for hotel stock in major commercial areas from a number of Asian countries and from worldwide hotel chains�.  

�However, post September 11, the price gap between owners and buyers has proven to be a deal obstacle and we expect this challenge to continue in 2002� concluded Mr Clark.

Jones Lang LaSalle Hotels Digest Australia 2001/02 Edition, provides the latest analysis and forecasts for the country�s five major hotel markets.  The Digest features an economic report card, tourism market examination, future supply tables and an analysis of investment and management trends.

Jones Lang LaSalle Hotels, the world�s leading hotel investment services group, provides clients with value-added investment opportunities and advice.