Hume Accommodation Investment Prospectus

Norths Lookout, National Park Credit: Destination NSW Why invest? Welcome to 6 million visitor trips in 2018 Destination Murray +1.9 million trips between 2009-18 3.7% growth p.a. in visitor trips since 2009 The Riverina Murray is one of the most Encompassing 149,000 square kilometres diverse in NSW, with a variety and 22 local government areas, the of visitor experiences including alpine has a great diversity of tourism landscapes, arid , mountains, assets and varying visitor markets, making NSW Proximity to rivers and major inland cities. it necessary to focus development at major markets the subregional level. SA RIVERINA MURRAY Easily accessible for ACT NSW, SA, VIC and ACT The existing supply of accommodation is VIC visitor markets inadequate to meet changing consumer desires for quality, contemporary and experiential accommodation. Significant investment is needed to improve and expand the accommodation supply to Market Desire match the high-quality regional tourism Increasing desire offering. for quality, contemporary and experiential visitor Destination Riverina Murray is accommodation interested in working with both existing accommodation property owners and new investors to develop the accommodation offering in the region Riverina so that it meets the future demand and + 970,000 Murray expectations of travellers. This document visitor nights Projected additional presents a shortlist of opportunities visitor nights by 2027 currently available in the accommodation sector and we encourage you to get in touch if you would like to find out more.

The , Albury Credit: Destination NSW AVERAGE LENGTH OF STAY Albury Hume Overnight visitors to the region stay on average 2.6 The Albury Hume sub region includes the Albury and nights per visit. Greater Hume local government areas. Key product VISITORS STAYING strengths of the region are arts and culture with IN COMMERCIAL the Murray Art Museum Albury (MAMA) precinct ACCOMMODATION* driving visitation to Albury, and nature-based attractions, including the Murray River, Lake Hume and . 291,496 ADELONG Domestic 211,947 There is a significant events market in Albury that Overnight + Visitors Annually Projected increase drives weekend visits, with a calendar of large-scale BATLOW events attracting sport, recreation, business and in total visitor 10,166 nights in commercial conferencing markets. International Overnight accommodation Albury is the key accommodation base in the sub Visitors Annually by 2027. region and through its relationship with Victorian GREATER HOLBROOK sister city , has formed one of the largest HUME *Commercial accommodation includes hotels, caravan inland urban centres in and has established parks, B&Bs, but does not include staying at private itself as a significant visitor hub. accommodation such as with friends and family. Woomargama National Park Distance from Albury to Major Centres ALBURY WODONGA Canberra 3.5 hrs South Hume 5.5 hrs Australia Hwy 3.5 hrs Outback Riverina Sydney 8 hrs MURRAY RIVER Griffith & Wagga Melbourne 3.5 hrs Western Wagga & Australian Capital Riverina Eastern Territory Sydney 1.25 hrs Riverina Melbourne 1 hrs

Central Murray

Albury Snowy Hume Valleys

The Murray River, Albury Credit: Destination NSW Primary visitor markets Accommodation supply Business visitors There were 104 accommodation establishments in The Albury-Hume region receives high the Albury Hume , dominated by motel/ levels of business visitation, due to the motor inn (32%) and self-contained house/apartment number of regional level conferencing unit (32%). and business facilities, as well as the large business base. Most of the rooms in Albury Hume are motel/motor inn style rooms (817 rooms or 42%) and hotel/resort rooms (655 or 34%). This is influenced by the large Adult couples business market visiting Albury, as well as family Aged 30-40 years old, this group is visitors to resorts such as the Lake Hume Resort. a key target market for the Albury- Hume region, as there is a range of contemporary visitor experiences in Establishments Rooms Albury to attract this market for a holiday, Self contained house/ as well as nature-based attractions apartment/unit 33 32% 817 42% throughout Greater Hume to provide a Motel/Motor Inn romantic couples visit. 33 32% 249 13% Hotel/Resort 15 14% 655 34% Caravan/Camping Event market 10 10% 162 8% The Albury-Hume region receives high (Cabins only) levels of event visitation, due to the Group Accommodation/ number of regional level sport and Backpackers/Farmstay 8 8% 29 2% recreation facilities, as well as cultural B&B/Guesthouse events, festivals and conferences 5 5% 14 1% occurring in Albury-Wodonga due to the Total 104 100% 1,926 100% easy access by road, rail and air. Nature-based visitors There are a range of natural attractions for targeted investment towards the nature-based experience market, with the Murray River, Lake Hume and Woomargama National Park providing significant opportunities for eco- accommodation development. Accommodation needs The table below provides a forecast for additional accommodation rooms required in the Albury Hume Secondary visitor markets region by 2027.

The forecast is based on a conservative occupancy Family groups rate of 65% and has been calculated using data from existing accommodation supply and demand along with estimates of future activity such as population growth. High end travellers Based on the mid-point growth scenario it is estimated an additional 431 rooms are required to meet projected demand in the accommodation Budget tourists sector to support a growing visitor market to the Albury and Greater Hume region.

Forecast Room Needs 2027 Coach groups High Mid Low Scenario Scenario Scenario 65% 566 431 264 The Great Australian Beer Festival, Albury Occupancy Credit: Destination Riverina Murray Invest in Invest in Resort Style Caravan Park Backpacker/Hostel

The Albury CBD is excellently placed to support quality There is opportunity to develop a caravan park style Target Nature-based visitors Target Event market resort in Albury Hume that will appeal to family backpacker/hostel accommodation, which is well suited Markets Event market Markets Budget tourists groups as well as nature-based visitors and people to younger markets, event visitors and budget Family groups attending major events. This could be achieved by travellers. There is a lack of quality contemporary expanding and enhancing the offering of an existing budget accommodation in Albury Hume and is a major Amenities for both children and property or by developing a new site. RACV Cobram Success growth market for the region, with a growing, younger Success Location in the heart of the CBD Factors parents Factors is a highly successful example of a resort that is population in Albury-Wodonga and associated visitor Vibrant communal spaces for social- Poolside dining options well-utilised year round, with an indoor pool and markets. isation fitness centre, outdoor pool, bicycle hire, high quali- Range of accommodation types, from Variety of activities and amenities budget to high-end ty shared amenities and a range of activities for In addition Albury Hume attracts backpacker farm Fun and contemporary design children. labourers also suited to this type of accommodation. Potential Albury - near the CBD Potential Albury city centre Investment Greater Hume - on the Murray River There is an opportunity to develop this style of Locations Investment A quality backpackers establishment would also be Locations resort near the CBD areas of Albury and Wodonga, suited to international visitors who ar e travelling or in the Greater Hume area along the Murray River. independently, short-stay student markets accessing the two universities and two TAFE’s and the long-term working holiday market.

Source: Visit NSW Best Practice Wake Up!, Sydney

Best Practice Cobram RACV Resort, Cobram, Victoria

Source: Wake Up Invest in Invest in Value Accommodation Boutique Hotels

There is a major gap in value accommodation that is There is an opportunity for investment in boutique, Target Coach groups Target Business travellers both contemporary and affordable in Albury Hume. high-quality hotels throughout the region, including Markets Transient labour market Markets Adult couples Current 3 star accommodation in Albury Hume in the Albury city centre. This currently presents a Event market consists mainly of outdated motels and motor inns, gap in the region; there are limited 5 star which are not meeting the expectations of younger establishments in Albury, with most of the larger Contemporary, clean design travellers. Success branded hotels being 4 star standard. Success Quality design and fitout Factors Proximity to CBD amenities Factors CBD location Development of fashionable yet reasonably priced 3 Delivery of quality amenity for A boutique destination hotel would be suited to High level of service star accommodation will attract touring groups, affordable prices short weekend escapes for couples, weddings and transient labour markets and event visitors. These social events, as well as supporting the business Potential Albury city centre groups are driven to the region for a specific Potential Albury city centre market midweek. This is well suited to the Albury Investment Investment city centre, with growing investment in the cultural Locations purpose, so although not looking for high-end Locations accommodation, there remains a level of precinct, as well as other boutique expectation regarding quality. There is opportunity accommodation offerings demonstrating demand to refurbish many of the existing motels and motor such as the recently opened Circa 1928 on Dean inns to develop a more modern experience- for Street, Albury. visitors.

Best Practice MACq1, Hobart

Best Practice Hotel 28, Sydney

Source: Hotel 28 Source: MACq1 Invest in Invest in Self-contained Eco-lodges/ accommodation Glamping

There is growing preference for self-contained There is a particular need for small-scale, high-quality Business travellers accommodation in a number of key markets for the Target accommodation experiences in Greater Hume, Target High-end travellers Markets Markets region. There are however a number of large self- Adult couples targeting higher-end visitors and adult couples. Adult Couples contained and serviced apartment facilities in Albury Transient labour market Eco-lodges/glamping can capitalise on the natural Nature-based visitors that anecdotally have high occupancy rates. In line Visiting friends and relatives market landscape and picturesque views throughout Greater with projected visitation growth, this is a medium- Weekend events market Hume, whilst providing an upmarket experience for Success Luxury in natural setting long term opportunity for the region, with likely visitors who are not interested in caravanning or Factors Serenity and seclusion demand for another large scale self-contained Success Fully self-contained rooms camping. Experiential accommodation accommodation facility in 5 years’ time or less. Factors Contemporary design and fit out This type of accommodation could include boutique Proximity to CBD Potential Rural locations – potential near A successful example is the Quest Ballarat facility that eco-chalets and also include some slightly more Investment Table Top in Greater Hume or along recently opened with adjoining conference centre. affordable options such as eco-cabins. Locations Lake Hume in Albury. Potential Albury city centre Investment Wonga Wetlands Locations The Murray river

Best Practice Best Meriton Suites, Practice Gold Coast Balnarring Retreat, Victoria

Source: Meriton Suites Source: Branch Studio Architects Lake Hume, Albury Credit: Visit Albury Wodonga Invest in Farmstay

Given the agricultural strengths of the region, quality Nature-based visitors farmstay accommodation is a key gap for Albury Hume. Target Markets The growing food and wine tourism market in the sub Family groups region is well matched with this accommodation type.

Furthermore, there is a particularly strong appetite Success Rural outlook for private development by farmers in Greater Hume Factors Contemporary fit out looking for alternative sources of income. Agricultural experience – either farm animals, or produce growing/ processing

Potential Rural locations Investment Locations

Best

Practice Source: AirBnb The Barn, Heathcote

Destination Riverina Murray acknowledges the To view the full Riverina Murray Accommodation many Aboriginal Nations and Aboriginal People of Market Assessment Report report, click here. the Riverina Murray region as the traditional carers and custodians of the land that we all now live and For further information please get in touch with work on. We pay our respect to Elders past, present Destination Riverina Murray: and emerging. Destination Riverina Murray values the diversity of Email - [email protected] this region and works in partnership with local Aboriginal Website - www.riverinamurray.com.au communities to respectfully celebrate and share @riverinamurray Aboriginal culture with visitors to the region and also Instagram - with locals who live here. LinkedIn - Destination Riverina Murray

Published November 2019