Intercity Belmont Pty Ltd T/As Country Comfort Perth

BNB Submission 81

11th January 2019

Ref: Submission for Inquiry into Unregulated Accommodation

Committee,

As below, please find my submission into the impact of the unregulated short‐stay accommodation sector.

INTRODUCTION

1. Property Description ‐ The hotel operates a 158 room 4 star accommodation hotel and restaurant. The room types include a. 88 Deluxe entry rooms b. 62 Executive Suites c. 8 x 3‐bedroom townhouses (each individually leased from the individual owners) 2. Staff Employed ‐ 40 direct employees with gross payroll turnover $1.78 mil ‐ Contracted housekeeping contractor employing approx. 15 staff ($750,000) 3. Trainees / Apprentices ‐ The hotel has one current apprentice, and has around four apprentice chefs qualified over the last ten years ‐ The hotel has also undertaken school‐based trainees ‐ Assisted with school based “work – experience” ‐ Assisted with graduate program “industry placements” ‐ Assisted with disability inclusion programs in conjunction with Durham Road School and various community groups. 4. Associated suppliers ‐ The hotel would support over 100 local contractors and suppliers

THE GROWTH OF THE UNREGULATED SHORT STAY ACCOMMODATION

‐ In conjunction with a continual review of this emerging sector, latest data shows that there are 11,500 Airbnb listings, when in 2016 there were 5,425 listings. ‐ 69% of these units are either full homes or apartments. ‐ Assuming that each owner of these Airbnb’s, owns their own accommodation and land tax applies to these assets, the value of land tax that should be imposed on units operated as a commercial premise would approximately be ($330 x 69% x 11,500) $2,618,000. Intercity Belmont Pty Ltd T/as Country Comfort Perth (ABN 77 049 551 014) 249‐263 Great Eastern Highway, Belmont, WA 6104 PH+61 (8) 94780888 Fax +61 (8) 94780800 E: [email protected] BNB Submission 81

IMPACT ON HOTEL OCCUPANCY

Over the last four years, the hotel has undertaken several large refurbishments and has calculated occupancy and ADR for the hotel and townhouses on the units available (less out of order rooms)

Since 2016, the hotel has seen the greatest impact of Airbnb on the townhouse inventory where the market has been flooded with unregulated competitors.

Since 2016, the hotel has reduced inventory from 11 to 8 townhouses as the market becomes harder for the hotel to compete. The below tables reflect the change in occupancy over this time between the townhouses and the hotel. It does not include the revenue losses from the hotel reducing inventory or the change in ADR$ achieved.

The calculation is based on “if the townhouses ran at the same occupancy as the hotel, what would the be the additional revenues achieved?”

The figure would be approximately $760,000 over the 2016, 2017 and 2018 calendar years. (which excludes revenues from townhouses that were released when their leases renewals were not extended)

Total Townhouse Rms Avl Rms Sold Total Rev ADR$ Occ% 2015 3,989 2,428 765,579 $ 315.31 61% 2016 3,938 2,137 652,505 $ 305.34 54% 2017 3,980 2,323 639,054 $ 275.10 58% 2018 3,011 1,782 488,306 $ 274.02 59%

Hotel Operation Rms Avl Rms Sold Total Rev ADR$ Occ% 2015 50,132 36,387 6,301,213 $ 173.17 73% 2016 54,943 41,445 6,332,439 $ 152.79 75% 2017 54,161 45,258 6,388,904 $ 141.17 84% 2018 52,403 45,641 6,045,775 $ 132.46 87%

Townhouse occupancy cost compared to hotel 2015 12% 467.3112 $ 147,349.12 2016 21% 833.5406 $ 254,510.71 2017 25% 1002.767 $ 275,859.64 2018 28% 840.4653 $ 230,305.42 $ 908,024.90

Intercity Belmont Pty Ltd T/as Country Comfort Perth (ABN 77 049 551 014) 249‐263 Great Eastern Highway, Belmont, WA 6104 PH+61 (8) 94780888 Fax +61 (8) 94780800 E: [email protected] BNB Submission 81 IMPACT ON THE PERTH ACCOMMODATION SECTOR IN LINE WITH HOTEL GROWTH

2016 – 1,145 new rooms – Capital Cost $693 Million

2017 – 529 rooms – Capital Cost $219 million

2018 – 964 rooms – Capital cost $394.5 million

Total increase over three years 2,638 rooms $1.3065 billion

In review of the figures provided by the AHA, Airbnb has increased from 5,425 listings to 11,500 since 2016. This represent an increase of 6,075 listings

At the same tame (as per the AHA Intelligence Report), the following increases in hotel accommodation and capital expenditure was undertaken to ensure the Perth Tourism Accommodation Sector remained competitive nationally and internationally as a key tourist and commercial destination.

Growth in Airbnb listings represented a 230% increase in listing compared to new hotel inventory. With a large majority of Airbnb clients staying for leisure rather than corporate business, there has been a evident decrease in ADR$ achieved over the typical leisure nights of Friday & Saturday in particular.

In TAA members bulletin 10 January 2019, Visitor numbers for hotels, motels & resorts increased 8.52% YE September 2018, where Airbnb type rentals increased by 16.64% nationally. This shows that the unregulated market is increasing at double the rate of the traditional regulated accommodation market.

NEGATIVE IMPACTS of AIRBNB

As stated in the Deloitte Report 2016, Economic Effects of Airbnb in Australia (Airbnb Australia 2017). Whilst it highlighted alleged benefits to Tourism within in Australia, the report did not address the Industry’s key concerns with the operation of Airbnb as stated.

Issues, including

a. Anti‐Social behaviour b. Building wear & tear c. Degrading of amenities and capital values d. Drivers of cost differential between hotel and Airbnb listings e. The regulation difference between hotel and Airbnb listings

With a simplistic view of the economics effects of Airbnb on Australia, the report is severely flawed in the fact that it has not provided any economic cost derived from the expansion in Airbnb within Australia

‐ Correct Taxation on revenues derived from Airbnb ‐ Avoidance of commercial taxation consideration for residences that are used as a commercial enterprise rather than a domestic dwelling ‐ Social impact and costs associated with Airbnb on surrounding units / dwellings

Airbnb – increase in units since 2016 at 69% for full dwellings represents an increase of an additional 1,529,988 unregulated room nights available per year in WA.

New hotel rooms since 2016 – 2,638 – represents an increase of 962,870 room nights

Combined, available hotel rooms and full dwellings have increased by 2,492,858 available room nights over the last 3 years.

In 2017, Perth Airport recorded 13.7 million passengers – a Decrease of 0.9%.

With supply growth far outpacing demand growth, the industry is requesting greater regulation to protect the long‐ term viability and employment surrounding the Western Australian regulated accommodation sector

Intercity Belmont Pty Ltd T/as Country Comfort Perth (ABN 77 049 551 014) 249‐263 Great Eastern Highway, Belmont, WA 6104 PH+61 (8) 94780888 Fax +61 (8) 94780800 E: [email protected] BNB Submission 81 Review of the Bankwest Curtain Economic Centre Impact of AirBnb in Western Australia (Apr 2017)

In April 2017, the report was published identifying many key areas of concern raised by the tourism, financial and social impacts derived by Airbnb. Two of the keys concluding remarks in relation to regulation and stakeholder concerns are added below for further consideration under the adoption of policy to regulate the short term letting market.

Concluding remarks on the multiple case study analysis

Overall, the analysis indicates that most of the case study cities try to deal with Airbnb in terms of existing regulations in the fields of tourism and the rental property market. While these regulative and legislative frameworks might need to be adapted, it is rather rare that cities consider the sharing economy or Airbnb specifically as phenomena in their own right.

Most of the cities that have been reviewed for this report seem to adopt a middle ground in terms of restrictiveness by trying to avoid a complete prohibition of the phenomenon on the one hand and limiting potentially adverse effects and unfair competition on the other. This is often done by defining a clear line between private and commercial realms of operation. This line is usually drawn by referring to caps on maximum time of short‐term rental per year, maximum prices and to the maximum number of sublet short‐term units per owner. In more and more instances, Airbnb has agreed to automatically ban properties from their platform that do not obey to a city’s imposed limits. Cities that take a more restrictive approach limit permission to the type of properties, to licenced providers and/or to owners in residence (partly requiring their physical co‐presence).

Intercity Belmont Pty Ltd T/as Country Comfort Perth (ABN 77 049 551 014) 249‐263 Great Eastern Highway, Belmont, WA 6104 PH+61 (8) 94780888 Fax +61 (8) 94780800 E: [email protected] BNB Submission 81 Concluding remarks on the analysis of stakeholder perceptions

Overall, stakeholders who participated in this study had a mixed attitude towards Airbnb, which was seen as adding a competitive element to the current market place that potentially could open up additional opportunities for tourism in WA but might also constitute a threat to the conventional accommodation sector. They recognized that the sharing economy and here in particular sharing platforms such as Uber and Airbnb were indeed contested issues for WA’s tourism sector that required close monitoring and governance in the future: Proponents and opponents agreed that there was currently a lack of reliable information to assess the extent and impact of Airbnb on WA’s tourism sector and wider economy and uniformly called for more robust and accessible data as well as decisive leadership in governing the sharing economy.

Summary

The hotel supported the collection of data that was provided to Bankwest Curtain Economic Centre for the generation of the report that was published in April 2017. At that time, there has been no “Decisive leadership in governing the share economy”. Now in 2018, the has been no policy or further regulation adopted to stem the unregulated share accommodation sector. With listings now estimated at around 13,000, this has continued to place additional pressures on the existing traditional hotel sector and further highlights the detrimental economic impact that this unregulated competitor has had & will continue to have on the market.

Requested Actions

1. All politicians, policy advisors and associated proponents that have a vested interest in Airbnb should declare this interest and be removed from the regulation processes required for the short‐term letting industry. 2. WA Government should adopt a middle ground approach to the short stay economy ensuring that the correct collection of GST, property tax, income Tax and relevant insurances are aligned with the regulated tourism industry. This can be achieved by the requirement to register all premises that are to be rented on any short‐ term letting platforms. 3. That relevant review of all statutory fire, safety, parking and building compliance are adopted. 4. Significant penalties be adopted to discourage the continuation of unregulated short term letting. 5. Further review of both the WA Strata Titles Act 1985 be adopted to protect the interests and “quiet enjoyment” of residents who believe they have purchased into a long‐term letting environment.

Regards

Peter Neville

General Manager

References

1. Bankwest Curtain Economic Centre Impact of AirBnb in Western Australia (Apr 2017) www.bcecreports.edu.au/airbnb/index.html

2. Perth Industry Update February 2018

3. Country Comfort Occupancy Townhouse Vrs Hotel Calculations

Attached

1. TAA Members Bulletin – 10 January 2019

2. AHA Accommodation Development Intelligence Report – January 2019

MEMBER BULLETIN 10 January 2019

INTERNATIONAL TOURISM REPORT: OVERVIEW OF ACCOMMODATION PERFORMANCE

1. Key markets and trends

1.1 Overview International Visitors 8,445,234 ↑5.73% International Visitor Nights 270,576,740 ↑1.11% International Visitor Expenditure $43.158 billion ↑4.78% Average International Visitor Expenditure $5,110 ↓0.90%

International visitors to Australia numbered 8.4 million in the year ending September 2018, a 5.73% increase on the previous year. They spent $43.16 billion, an increase of 4.58%. Visitor nights increased slightly by 1.11% to reach 270 million.

Regarding visitors, a number of countries demonstrated growth including India, Hong Kong, China, and Japan. While visitor nights were once again topped by China with 57 million, an increase of 7.56%, there was significant growth in Indian visitor nights (up 21.13%). Regarding traditional markets, the story was different, with visitors nights falling for the USA (down 12.61%), New Zealand (down 6.97%), and the UK (down 6.99%). Singapore visitor nights also fell (down 11.36%).

There was growth in smaller capital cities for visitor nights in hotels, motels, and resorts. Hobart was up 20.93%, Darwin 25.52%, and less significant growth was recorded in Brisbane with a 3.5% increase and Canberra with a 2.92% increase. All other capital cities showed a decrease with Adelaide experiencing the biggest decrease (- 12.75%).

In regional locations, there was significant growth in visitor nights in hotels, motels, and resorts for NSW (up 13.8%), Victoria (13.06%), and Tasmania (12.72%). Overall, international visitor nights in hotels, motels, and resorts remained steady at 0.19%. However, across all accommodation categories there was a decrease of 6.43%.

International visitor nights in ‘Rented plus Other Private’ has grown 65% since 2009. This is in comparison to growth over the same period for ‘Hotels, Motels, and Resorts’ of 35.3%.

For the reasons explained on page 6, data relating to ‘purpose of visit’ has been excluded from this IVS release. The quality of the survey data has not been affected.

BNB Submission 81

MEMBER BULLETIN 2. International Visitor Trends 2.1 Key Market Synopsis

Average Key Market Visitor Annual Visitors Annual Expenditure Synopsis Nights Growth Growth per Night (AUD) China 1,315,596 7.63% 57,579,358 7.56% 200 New Zealand 1,255,848 2.55% 12,816,819 -6.97% 200 United States of America 735,592 3.31% 13,029,349 -12.61% 280 United Kingdom 69,855 3.26% 22,476,266 -6.99% 155 Japan 418,949 5.92% 10,504,909 -1.81% 174 Singapore 381,627 -0.59% 5,611,890 -11.36% 256 Malaysia 357,558 0.48% 8,869,436 2.72% 151 India 324,336 19.62% 18,795,557 21.13% 85 Korea 277,897 2.73% 11,037,113 3.20% 147 Hong Kong 276,294 10.75% 6,904,156 -7.96% 188 2.2 International Visitor Nights by State

Year Ending Sept Year Ending Sept % of all Rank State Change (%) 2017 2018 Visitors Nights 1 NSW 94,937,879 95,538,968 0.6 35.3 2 VIC 66,860,352 70,210,219 5.0 25.9 3 QLD 53,596,311 54,483,600 1.7 20.1 4 WA 27,329,854 25,874,034 -5.3 9.6 5 SA 10,874,500 10,174,039 -6.4 3.8 6 ACT 5,132,936 5,203,669 1.4 1.9 7 TAS 4,486,083 5,018,141 11.9 1.9 8 NT 3,796,194 3,567,499 -6.0 1.3 Total AUS 26,760,512 27,057,674 1.1 100.0

2 BNB Submission 81

MEMBER BULLETIN 3. Accommodation Performance - Capital Cities (plus GC) 3.1 Capital Cities, International Visitor Nights Spent in Hotels, Motels and Resorts

Year Ending Year Ending Rank Regional Change Sept 2017 Sept 2018 1 Sydney 8,770,904 8,639,033 -1.50% 2 Melbourne 6,157,248 6,039,649 -1.91% 3 Gold Coast 2,250,876 2,151,812 -4.40% 4 Brisbane 2,039,895 2,111,251 3.50% 5 Perth 1,602,722 1,591,778 -0.68% 6 Adelaide 1,002,660 874,846 -12.75% 7 Hobart 400,958 484,871 20.93% 8 Darwin 320,579 402,386 25.52% 9 Canberra 298,626 307,353 2.92% Capital Cities incl. Total -1.06% Gold Coast 22,844,468 22,602,978

3.2 Capital Cities, International Visitor Nights Across All Accommodation Categories

Year Ending Year Ending Rank Regional Change Sept 2017 Sept 2018 1 Sydney 79,668,290 80,994,353 1.66% 2 Melbourne 58,699,654 62,294,412 6.12% 3 Brisbane 26,262,170 28,365,255 8.01% 4 Perth 21,907,573 20,753,443 -5.27% 5 Gold Coast 9,229,488 9,565,463 3.64% 6 Adelaide 8,844,963 8,372,726 -5.34% 7 Canberra 5,132,936 5,203,669 1.38% 9 Hobart 2,568,825 3,415,324 32.95% 8 Darwin 2,256,200 1,985,920 -11.98% Capital Cities incl. Total 214,570,098 220,950,566 2.97% Gold Coast

3 BNB Submission 81

MEMBER BULLETIN 4. Accommodation Performance - Regional 4.1 Regional Locations, International Visitor Nights Spent in Hotels, Motels and Resorts

Year Ending Sept Year Ending Sept Rank Regional Change 2017 2018 1 QLD 3,402,192 3,236,433 -4.87% 2 NSW 935,807 1,064,931 13.80% 3 VIC 605,613 684,701 13.06% 4 WA 481,129 477,539 -0.75% 5 NT 486,899 471,636 -3.13% 6 TAS 251,966 284,025 12.72% 7 SA 232,522 188,794 -18.81% Total Regional 6,396,128 6,408,059 0.19%

Over the past ten years, annual growth in HMSA visitor nights in regional SA has regularly fluctuated in a range of -30% to +30%.

4.2 Regional Locations, International Visitor Nights Across All Accommodation Categories

Year Ending Sept Year Ending Sept Rank Regional Change 2017 2018 1 QLD 18,104,653 16,552,881 -8.57% 2 NSW 15,269,589 14,544,616 -4.75% 3 VIC 8,160,698 7,915,807 -3.00% 4 WA 5,422,281 5,120,591 -5.56% 5 SA 2,029,537 1,801,313 -11.25% 6 TAS 1,917,258 1,602,817 -16.40% 7 NT 1,539,994 1,581,579 2.70% Total Regional 53,035,022 49,626,174 -6.43%

BNB Submission 81

MEMBER BULLETIN 5. Unregulated Accommodation

Tourism Research Australia has advised TAA that unregulated accommodation (i.e. Airbnb-type rentals) is presently recorded in two categories: ‘Rented house/apartment/flat or unit’ and ‘Other Private Accommodation.’ Accordingly, these two categories have been combined below and labelled ‘Rented plus Other Private’. 5.1 International Visitor Nights by Accommodation Category

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

Hotel/resort/motel or motor Inn Guest house or Bed & Breakfast Rented plus Other Private Caravan park or commercial camping ground Backpacker or hostel Own property Friends or relatives property

5 BNB Submission 81

MEMBER BULLETIN 6. Notes

Serviced apartments are included in the Hotels/Motels/Resorts data category.

These IVS results for the September quarter 2018 are preliminary and do not include any data relating to purpose of visit. This is because the quality of the main purpose of visit component of the passenger data supplied to TRA by the Department of Home Affairs has been identified as a concern. There are no issues with the survey collection.

To produce a purpose of visitor measure for the IVS, TRA uses data collected from the incoming passenger cards of international visitors to Australia. Work is currently in progress to resolve these issues and it is likely that a back cast of TRA data will be required. TRA will release revised estimates once a solution has been implemented.

The POV (Purpose of Visit) data is being revised. TAA have been advised by Tourism Research Australia that POV data should be available for the CY publication, in March, subject to Minister approval.

7. More Information

The data in this Member Bulletin is from Tourism Research Australia’s International Visitors In Australia: September 2018 Quarterly Results Of The International Visitor Survey. It can be accessed at https://www.tra.gov.au/research/latest-ivs-report.html.

If you have questions about the information provided in this overview, or would like further information, please email: [email protected].

6 BNB Submission 81

AHA Accommodation Development Intelligence Report Perth Metropolitan Region January 2019 In 2012 the Western Australian Government released the “State Government Strategy for Tourism in Western Australia 2020.” This Strategy set out the direction for the Western Australian tourism industry over the next decade. Within the 2020 strategy it included modelling commissioned by Tourism WA which forecast that Perth would need an additional 1,900 hotel rooms by 2020 to keep occupancy at viable and sustainable levels.

The WA 2020 Strategy identifies how Government can work with industry to make the most of the growth in travel and international markets, as well as encourage further development and diversification in the regions. The Strategy set a stretch target of the value of tourism in Western Australia to double from $6 billion a year in 2010 to $12 billion a year by 2020.

The Data compiled in this intelligence report has tracked rooms opened since 2012 and those under construction or consideration. The information is derived directly from local government, building and planning applications, direct sources, state development approval panels and trade media.

New openings  3322 new rooms in 31 hotels/serviced apartments have opened since 2012.

Committed / Under Construction  3433 rooms in 18 hotels/serviced apartments are significantly committed or under construction refers to projects that have received final development approvals and or the WA Government is actively involved in the project.

Under Consideration  4997 rooms in 39 hotels/serviced apartments are proposed for development, have lodged development applications, or are in the early stages of planning.

Redevelopment  835 existing rooms in 5 hotels have been redeveloped, with a further 117 committed.

Expressions of Interest  4 expressions of interest in the market for hotels / serviced apartments.

Closed Properties  2 properties have closed in 2018 – The Richardson and The Terrace Hotel. 89 rooms have been removed from the market. NEW OPENINGS SINCE 2012 BNB Submission 81

NEW EST. STAGE OF PROJECT CITY DEVELOPER YEAR ROOMS COST DEVELOPMENT

Terrace Hotel Perth 15 Complete 2012 237 St Georges Terrace

Fraser Suites Apartments $450 M Frasers Property East Perth 236 Complete 2012 Queens Precinct Causeway Stage1&2 Australia

Hougoumont Hotel – Stage 1 Redrock Consolidated Fremantle 40 $- Complete 2014 7-15 Bannister Street P/L

Bailey’s Serviced Apartments East Perth 25 $6 M Bailey’s Hotel Motel Complete 2014 63 Bennett Street

The Nest on Newcastle Casella Nominees Old Northbridge 20 $1.5 M Complete 2015 172 Newcastle St Crow

Alex Hotel Cicero Management Pty Northbridge 74 $12 M Complete 2015 214 William Street Ltd

Country Comfort InterCity Intercity Belmont Pty Complete Hotel & Apartments – Belmont 62 $8 M 2015 Ltd Expansion 249 Great Eastern Highway

Quest Rockingham* Rockingham 96 $22 M Aligned Funds Complete 2015 22 Flinders Lane

City Lights Northbridge 46 $10 M Heyspring Land Pty Ltd Complete 2015 137 Newcastle Street

Como The Treasury Oct Perth 48 $208 M FJM Property Complete 28 Barrack Street 2015

Attika Hotel* Dec Northbridge 22 $4 M Skycap Pty Ltd Complete 279 Newcastle Street 2015

Holiday Inn Perth City Centre Complete 778 – 788 Hay Street Perth 5 $25 M IHG Group 2016 Redevelopment

Seashells Fremantle* East Fremantle 24 $ Complete 2016 1 Silas St

Peppers Kings Square WEJ Developments WA 623 Wellington Street Perth 120 $25 M Complete 2016 Pty Ltd

Quest West Perth* Feb West Perth 72 $9 M Woomara Pty Ltd Complete 54 Kings Park Road 2016

Sage Hotel West Perth Australian Development May West Perth 101 $14 M Complete 1309-1311 Hay Street Capital Pty Ltd 2016

Quest Mounts Bay Road* July West Perth 71 $8 M Quest Diploma Complete 130 Mounts Bay Road 2016

Quest East Perth* Aug East Perth 130 $14.5 M Sirona Capital Complete 176 Adelaide Terrace 2016

Crown Towers Dec Burswood 500 $568 M Crown Ltd Complete Great Eastern Highway 2016 BNB Submission 81 NEW EST. STAGE OF PROJECT CITY DEVELOPER YEAR ROOMS COST DEVELOPMENT

Quest Fremantle* Fairgreen Pty Ltd Dec Fremantle 122 $30 M Complete 8 Pakenham Street Sirona Capital 2016

Tribe Perth Four Walker Avenue May West Perth 126 $30 M Complete 4 Walker Avenue Pty Ltd 2017

Be. Fremantle Complete May Fremantle 24 $10M Sirona Capital 43 Mews Rd Expansion 2017

Aloft Perth May Rivervale 224 $70 M BGC Construction Complete 23-27 Rowe Avenue 2017

Ramada VetroBlu* Aug Stirling 75 $50 M Vetroblu Complete 48 Filburn St Scarborough 2017

Quest Innaloo* Probuild / Fabray Oct Innaloo 80 $59 M Complete 222 Stirling Cross Pty Ltd 2017

Melbourne Hotel Oakesfield Pty Ltd, April 942-950 Hay & 33 Milligan Perth 40 $40 M Complete Busby Nominees Pty Ltd 2018 Streets

Westin Perth BGC Construction with April Perth 368 $250 M Complete FESA Building, 480 Hay Street State Government 2018

Quest Midland* Fini Group / Precast May Midland 102 $11 M Complete 3 The Crescent Investments Pty Ltd 2018

The Sebel West Perth Aire Finbar Group Ltd / July Apartments* West Perth 64 $42 M Complete ZACD Group 2018 647-657 Murray Street (Singapore) Amalgamated Holdings QT Hotel Perth August Perth 184 $21.5 M Limited / Gutace Complete 133 – 141 Murray Street 2018 Holdings Pty Ltd DoubleTree by Hilton, Hilton Worldwide & SKS Jan AmanSari Northbridge Northbridge 206 $30 M Complete Group 2019 98-100 James Street

COMMITTED / UNDER CONSTRUCTION

PROJECT EST. STAGE OF CITY ROOMS DEVELOPER / OWNER YEAR COST DEVELOPMENT

Campus Perth The Trust Company (RE Early Perth 77 $55 M Under Construction 80 Stirling Street Services) Ltd 2019

Hostel G Early 318 80 Stirling Street 2019

The New Esplanade April Perth 80 $ - M H&M Capital Pty Ltd Under construction 18 The Esplanade 2019

Ritz-Carlton Hotel Mid Elizabeth Quay Foreshore Perth 204 $350 M Far East Consortium Under Construction 2019

EQ West CA & Associates Lot 2 & 3, William Street, Perth 190 $500 M Committed 2019 (AAIG and Fini Group) Elizabeth Quay BNB Submission 81 PROJECT EST. STAGE OF CITY ROOMS DEVELOPER / OWNER YEAR COST DEVELOPMENT

DoubleTree by Hilton Waterfront Hilton Worldwide & Perth 229 $142 M Under Construction 2019 351 Riverside Drive SKS Group

Quest on Mends St, Perth South Perth 90 $25 M Silverleaf Investments Under Construction 2019 34 Mends St, South Perth

Royal Hotel The Trust Company Late Perth 176 $ - Under Construction 289-316 Murray Street (Australia) Ltd 2019

NV Apartments and Hotel Fragrance WA – Perth Late Perth 488 $200 M Under Construction 374-396 Murray Street (Sing) 2019 Under Construction – Park Regis by Staywell Late Subiaco 168 $95 M Dradgin Pty Ltd on hold pending new 500 Hay Street 2019 developer Quest Apartments Joondalup Roman Catholic Oct Joondalup 50 $14 M Under Construction * Lot 538 (85) Boas Avenue Archbishop of Perth 2019

Mantra Hay Street Hotel Q4 Perth 250 $48 M George Atzemis Under Construction 900 Hay Street 2019 Committed. Ibis Styles Hotel East Perth 252 $22 M Rehawk Property Group DAP approved May 2019 69 Adelaide Terrace 2016. Dorsett Hotel Committed. Perth City Link Far East Consortium Construction to Perth 263 $158 M 2020 Milligan Street with MRA commence August 1/2 2019. The Leadlight Hotel Northbridge 126 - AusCapital Committed 2021 151-165 Beaufort Street

Hampton Inn by Hilton SKS Cockburn Central Cockburn Central 146 $40 M Committed 2020 28 Signal Terrace Pty Ltd

Wyndham LUX Hotel Committed. DAP Rivervale 120 $40 M Lux WA Pty Ltd 2020 61 Great Eastern Highway extended approval.

REDEVELOPMENTS

EST. STAGE OF PROJECT CITY ROOMS DEVELOPER YEAR COST DEVELOPMENT

Holiday Inn Perth City Centre Perth 181 $12 M IHG Group Complete 2016 778 – 788 Hay Street

IHG Intercontinental Complete Colonnade Lot 18, 815-823 Hay Oct Perth 240 $35 M UNIR Hotels Pty Ltd (Reduced from Street 2017 246 rooms)

Melbourne Hotel Oakesfield Pty Ltd, April 942-950 Hay & 33 Milligan Perth 33 $40 M Complete Busby Nominees Pty Ltd 2018 Streets

Ingot Hotel Perth Jeffees Nominees Pty 264 & 266 Great Eastern Ascot 214 $50 M Complete Dec 2018 Ltd Highway (corner Epsom Ave)* Rydges Hotel *Kings Hotel Redevelopment Christou Design Group Perth 117 $7.5 M Committed 517-533 Hay Street Pty Ltd

BNB Submission 81 EST. STAGE OF PROJECT CITY ROOMS DEVELOPER YEAR COST DEVELOPMENT

The Murray Hotel The Murray Hotel Under West Perth 50 $14 M 718 Murray Street Pty Ltd Consideration

CLOSED

PROJECT CITY ROOMS REASON YEAR OPENED YEAR CLOSED

Reopen 2012 The Terrace Hotel Perth 15 Financial / economy following extensive July 2018 237 St Georges Street renovations

Richardson Hotel Converting to an aged West Perth 74 2006 2018 32 Richardson St care facility

UNDER CONSIDERATION

EST. STAGE OF PROJECT CITY ROOMS DEVELOPER YEAR COST DEVELOPMENT

Under construction. Capital Square Phase 1 complete (former Emu Brewery Site) West Perth 120 $350 M AAIG Pty Ltd 2017. DAP approved 98 Mounts Bay Road March 2015

Iconic Scarborough Construction to Cnr Scarborough Beach Roast Scarborough 119 $450 M 3 Oceans’ commence Jan 2019 and West Coast Highway

78-80 Bennett Street Rowe Group / SZ DAP approval East Perth 16 $ 8.5M East Perth Property Pty Ltd granted May 2017

Courtyard by Marriott Roxy Pacific Holdings / DAP approval Perth 332 $47 M 609 Wellington Street ACH Perth Pty Ltd granted June 2016

DAP approval granted Feb 2014. Amara Development to be East Perth 326 $280 M Loxalot Pty Ltd 190 Adelaide Terrace substantially underway by Aug 2017.

IHG “Holiday Inn” Express Hotel Development / DAP approval Perth 224 $35 M 257 Adelaide Terrace Sunfire Asset Pty Ltd granted May 2013

Breakfree (Mantra) Pharma Global Australia DAP approved Dec East Perth 132 $16 M 195 Hay Street Pty Ltd 2016.

Lots 619 & 620 (155 & 157) DAP approval Jan Belmont 187 - Pinnacle Planning Great Eastern Highway 2017.

DAP approved Jan 2014. Extension on DoubleTree by Hilton Hilton Worldwide & SKS Fremantle 151 $70 M development 2 Point St & 64-86 Adelaide St Group commencement until Oct 2019. BNB Submission 81 EST. STAGE OF PROJECT CITY ROOMS DEVELOPER YEAR COST DEVELOPMENT

Under construction. Capital Square Phase 1 complete (former Emu Brewery Site) West Perth 120 $350 M AAIG Pty Ltd 2017. DAP approved 98 Mounts Bay Road March 2015

Iconic Scarborough Construction to Cnr Scarborough Beach Roast Scarborough 119 $450 M 3 Oceans’ commence Jan 2019 and West Coast Highway

Adelaide Street Hotel Spotlight Stores – DAP approved Dec Fremantle 151 $18 M 52 Adelaide Street Glenwaye Pty Ltd 2016

Nos. 31-41 (Lot 2073) and No. 45 DAP approved June (Lot 535) Henderson Street, Fremantle 62 $10M Silverleaf Investments 2018. Fremantle DAP approved Dec 36 St Georges Terrace & 10-14 2016, amendments Pier Street March 2018. 545 Global Premium Hotels Perth $100 M Development to be (Sing) 485 hotel rooms | 60 serviced substantially apartments underway by Dec 2019.

DAP approved March 90-96 Beaufort Street Perth 270 $42 M CP Landmark Pty Ltd 2016.

Little Fish Weston DAP approved June Lot 3 (286) Hay Street East Perth 180 Street Pty Ltd 2016.

DAP approved June Fragrance Group Hotel Folley Pty Ltd, Anthony 2016. Partial 39-41, 47-55 Milligan & 469-471 Perth 406 $180 M Constantine, Pasco demolition approved Murray Streets Nominees Pty Ltd, Aug 2018.

Yuanlong (Aust) DAP approved Feb 220-224 Pier Street Perth 150 $145 M Investment Group 2015.

Mft Investments (WA) DAP approved June No. 26 (Lot 440) Parry Street Fremantle 19 $7.7 M Pty Ltd 2018.

Adina Apartment Hotel DAP Approved Fremantle 141 $15 M Silverleaf Investments 28 Cantonment Street September 2018.

Lot 1884 (No.208) Kent Street, Bentley DAP Approved Dec Bentley 98 $45 M Curtin University *38 Self contained apartments, 2018. 60 hotel rooms 6 Burt Street and 51F Monmouth Angela and Francesco DAP Approved Dec Street * Mount Lawley 9 $2.6 M Cardaci 2018.

Denied DAP June Edge Holdings No 6 Pty Lots 2-20, 70-72 Mill Point Road * South Perth 16 $90 M 2018. Appealing Ltd decision.

Lots 29-31, 50-52 Melville Parade NL Homes Melville Pty South Perth 15 $85 M * Ltd

Lots 1060 (20) and 1061 (22) Denied DAP July Applecross 91 $39 M 22 Kintail Road Pty Ltd Kintail Road * 2018.

47 Clydesdale Street DAP Approved *To be used for short stay Como 21 $9 M Clydesdale 47 Pty Ltd September 2018. temporary accommodation

Hougoumont Hotel – Stage 2 Redrock Consolidated Fremantle 48 $6 M On hold 7-15 Bannister Street P/L BNB Submission 81 EST. STAGE OF PROJECT CITY ROOMS DEVELOPER YEAR COST DEVELOPMENT

Under construction. Capital Square Phase 1 complete (former Emu Brewery Site) West Perth 120 $350 M AAIG Pty Ltd 2017. DAP approved 98 Mounts Bay Road March 2015

Iconic Scarborough Construction to Cnr Scarborough Beach Roast Scarborough 119 $450 M 3 Oceans’ commence Jan 2019 and West Coast Highway

Rydges Hotel Christou Design Group Perth 57 $7.5 M On hold Kings Hotel, 517-533 Hay Street Pty Ltd

Stockade Buildings Demolition Perth 77 $15 M Mrs L Kakulas 2018 145-151 Barrack Street Approved.

Foreshore Investments Lot 3 Toll Place Albany 108 $17.2 M DAP Jan 2019. Albany Pty Ltd

783-789 Wellington St Perth 216 $14.3 M Wellington St Pty Ltd Under Consideration

Northbridge Centre 30 Beaufort Street Perth 140 $488 M Custodian Services Pty Under Consideration Ltd

RCH Property 182 Hay Street East Perth 18 $4 M Under Consideration Investments Pty Ltd

Carlton Hotel Perth 82 $5 M Ablebay Holdings Under Consideration 248-260 Hay Street

Quincy Boutique Hotel Australia Pacific Hotels Perth 56 $6 M Under Consideration 281-289 Hay Street (Sing)

180 (Lot 2) Bennett Street East Perth 85 $13.8 M Archiapps Pty Ltd Under Consideration

Billabong Backpackers Resort Highgate 138 $45 M Rothchester Pty Ltd Under Consideration 381 Beaufort Street

Northbridge Centre* Northbridge 88 $300 M ICD Property / EG Funds Under Consideration Cnr James & Stirling Street

Parker Street Hotel* Northbridge 144 - Megaland Developments Under Consideration 8 Parker Street

Metro Hotel Perth Metro Hotel South Perth 53 $14 M Under Consideration 61 Canning Highway (Extension)

Lot 5, South Terrace Fremantle 13 - Roger McKimm Under Consideration

* Denotes Serviced Apartment Developments

DAP – Development Assessment Panel

Data compiled in this intelligence report is derived directly from local government, building and planning applications, direct sources, state development approval panels and trade media. This report is based upon the best available information. Information in this report should not be relied upon and has been produced as a guide only. It is not intended to be comprehensive nor should it be relied upon as a substitute for legal or financial advice. The Australian Hotels Association (WA) expressly disclaims liability for any act or omission done in reliance of the information contained or for any consequences, whether direct or indirect, of any such act or omission. BNB Submission 81

Hotel TKQ2S TK4S Total Thouse Hotel Operation Rms Avl Rms Sold Total Rev % Rms Avl Rms Sold Total Rev Rms Avl Rms Sold Total Rev Rms Avl Rms Sold Total Rev ADR$ Occ% Rms Avl Rms Sold Total Rev ADR$ Occ% Dec‐14 3,069 2,217$ 406,141.00 72% 144 82$ 22,228.00 120 41$ 13,055.00 264 123$ 35,283.00 286.85$ 47% 2,805 2,094$ 370,858.00 177.11$ 75% 28% Jan‐15 3,069 2,277$ 413,953.00 74% 186 120$ 35,201.00 155 104$ 32,489.00 341 224$ 67,690.00 302.19$ 66% 2,728 2,053$ 346,263.00 168.66$ 75% 10% Feb‐15 2,716 2,436$ 450,057.00 90% 168 116$ 38,478.00 140 94$ 30,346.00 308 210$ 68,824.00 327.73$ 68% 2,408 2,226$ 381,233.00 171.26$ 92% 24% Mar‐15 4,061 3,250 $ 594,042.00 80% 186 104$ 33,678.00 155 71$ 24,057.00 341 175$ 57,735.00 329.91$ 51% 3,720 3,075$ 536,307.00 174.41$ 83% 31% Apr‐15 4,830 3,364 $ 624,759.00 70% 180 113$ 36,218.00 150 100$ 34,723.00 330 213$ 70,941.00 333.06$ 65% 4,500 3,151$ 553,818.00 175.76$ 70% 5% May‐15 4,991 3,544 $ 655,844.00 71% 186 122$ 39,155.00 145 83$ 27,756.00 331 205$ 66,911.00 326.40$ 62% 4,660 3,339$ 588,933.00 176.38$ 72% 10% Jun‐15 4,830 3,199$ 588,261.00 66% 180 104$ 30,285.00 145 61$ 18,168.00 325 165$ 48,453.00 293.65$ 51% 4,505 3,034 $ 539,808.00 177.92$ 67% 17% Jul‐15 4,830 3,199$ 588,261.00 66% 186 119$ 33,595.00 155 96$ 30,423.00 341 215$ 64,018.00 297.76$ 63% 4,489 2,984 $ 524,243.00 175.68$ 66% 3% Aug‐15 4,991 3,477$ 608,802.00 70% 180 96$ 30,255.00 155 77$ 24,967.00 335 173$ 55,222.00 319.20$ 52% 4,656 3,304 $ 553,580.00 167.55$ 71% 19% Sep‐15 4,991 3,596$ 652,851.00 72% 180 120$ 36,040.00 145 76$ 23,472.00 325 196$ 59,512.00 303.63$ 60% 4,666 3,400 $ 593,339.00 174.51$ 73% 13% Oct‐15 4,991 3,288$ 596,979.00 66% 186 133$ 42,348.00 155 90$ 28,200.00 341 223$ 70,548.00 316.36$ 65% 4,650 3,065$ 526,431.00 171.76$ 66% 1% Nov‐15 4,830 4,066$ 751,900.00 84% 180 140$ 43,082.00 150 105$ 34,756.00 330 245$ 77,838.00 317.71$ 74% 4,500 3,821$ 674,062.00 176.41$ 85% 11% Dec‐15 4,991 3,119$ 541,083.00 62% 186 110$ 34,646.00 155 74$ 23,241.00 341 184$ 57,887.00 314.60$ 54% 4,650 2,935$ 483,196.00 164.63$ 63% 9% Jan‐16 4,991 2,952$ 505,462.00 59% 186 116$ 37,304.00 155 90$ 29,149.00 341 206$ 66,453.00 322.59$ 60% 4,650 2,746$ 439,009.00 159.87$ 59% ‐1% Feb‐16 4,624 3,324 $ 586,316.00 72% 174 65$ 21,413.00 140 64$ 22,319.00 314 129$ 43,732.00 339.01$ 41% 4,310 3,195$ 542,584.00 169.82$ 74% 33% Mar‐16 4,991 3,491$ 599,122.00 70% 186 107$ 34,873.00 145 58$ 19,530.00 331 165$ 54,403.00 329.72$ 50% 4,660 3,326$ 544,719.00 163.78$ 71% 22% Apr‐16 4,830 3,193$ 539,058.00 66% 180 92$ 27,370.00 145 82$ 22,267.00 325 174$ 49,637.00 285.27$ 54% 4,505 3,019$ 489,421.00 162.11$ 67% 13% May‐16 4,991 3,573$ 565,658.00 72% 186 103$ 31,113.00 140 39$ 12,242.00 326 142$ 43,355.00 305.32$ 44% 4,665 3,431$ 522,303.00 152.23$ 74% 30% Jun‐16 4,830 3,554 $ 577,641.00 74% 180 106$ 32,388.00 150 68$ 20,076.00 330 174$ 52,464.00 301.52$ 53% 4,500 3,380 $ 525,177.00 155.38$ 75% 22% Jul‐16 4,991 3,302$ 505,269.00 66% 186 109$ 30,557.00 140 43$ 12,037.00 326 152$ 42,594.00 280.22$ 47% 4,665 3,150 $ 462,675.00 146.88$ 68% 21% Aug‐16 4,991 3,400 $ 531,896.00 68% 168 72$ 21,640.00 135 43$ 13,272.00 303 115$ 34,912.00 303.58$ 38% 4,688 3,285$ 496,984.00 151.29$ 70% 32% Sep‐16 4,830 4,134 $ 654,436.00 86% 180 138$ 44,917.00 150 100$ 31,769.00 330 238$ 76,686.00 322.21$ 72% 4,500 3,896$ 577,750.00 148.29$ 87% 14% Oct‐16 4,991 4,415$ 679,377.00 88% 186 130$ 39,340.00 155 95$ 27,814.00 341 225$ 67,154.00 298.46$ 66% 4,650 4,190 $ 612,223.00 146.12$ 90% 24% Nov‐16 4,830 4,414 $ 698,282.00 91% 180 139$ 40,170.00 150 94$ 26,467.00 330 233$ 66,637.00 286.00$ 71% 4,500 4,181$ 631,645.00 151.08$ 93% 22% Dec‐16 4,991 3,830 $ 542,427.00 77% 186 118$ 35,096.00 155 66$ 19,382.00 341 184$ 54,478.00 296.08$ 54% 4,650 3,646$ 487,949.00 133.83$ 78% 24% Jan‐17 4,991 3,996$ 544,252.00 80% 186 140$ 39,555.00 155 103$ 27,828.00 341 243$ 67,383.00 277.30$ 71% 4,650 3,753$ 476,869.00 127.06$ 81% 9% Feb‐17 4,508 3,818$ 573,026.00 85% 168 117$ 32,439.00 140 74$ 21,414.00 308 191$ 53,853.00 281.95$ 62% 4,200 3,627$ 519,173.00 143.14$ 86% 24% Mar‐17 4,991 3,915$ 593,780.00 78% 186 143$ 38,067.00 155 104$ 26,657.00 341 247$ 64,724.00 262.04$ 72% 4,650 3,668$ 529,056.00 144.24$ 79% 6% Apr‐17 4,830 3,381$ 519,454.00 70% 180 128$ 35,858.00 150 108$ 28,166.00 330 236$ 64,024.00 271.29$ 72% 4,500 3,145$ 455,430.00 144.81$ 70% ‐2% May‐17 4,991 3,920 $ 599,031.00 79% 186 115$ 31,597.00 155 66$ 18,296.00 341 181$ 49,893.00 275.65$ 53% 4,650 3,739$ 549,138.00 146.87$ 80% 27% Jun‐17 4,830 4,002$ 607,872.00 83% 180 134$ 37,876.00 140 102$ 30,280.00 320 236$ 68,156.00 288.80$ 74% 4,510 3,766$ 539,716.00 143.31$ 84% 10% Jul‐17 4,991 4,029$ 586,151.00 81% 186 91$ 22,262.00 155 65$ 17,529.00 341 156$ 39,791.00 255.07$ 46% 4,650 3,873$ 546,360.00 141.07$ 83% 38% Aug‐17 4,879 4,145$ 610,243.00 85% 186 98$ 27,066.00 155 85$ 22,961.00 341 183$ 50,027.00 273.37$ 54% 4,538 3,962$ 560,216.00 141.40$ 87% 34% Sep‐17 4,725 4,044 $ 589,421.00 86% 180 93$ 26,538.00 135 69$ 18,476.00 315 162$ 45,014.00 277.86$ 51% 4,410 3,882$ 544,407.00 140.24$ 88% 37% Oct‐17 4,806 4,145$ 600,628.00 86% 186 71$ 19,455.00 145 51$ 14,329.00 331 122$ 33,784.00 276.92$ 37% 4,475 4,023$ 566,844.00 140.90$ 90% 53% Nov‐17 4,703 4,087$ 619,502.00 87% 180 75$ 20,416.00 150 59$ 20,202.00 330 134$ 40,618.00 303.12$ 41% 4,373 3,953$ 578,884.00 146.44$ 90% 50% Dec‐17 4,896 4,099$ 584,598.00 84% 186 126$ 35,351.00 155 106$ 26,436.00 341 232$ 61,787.00 266.32$ 68% 4,555 3,867$ 522,811.00 135.20$ 85% 17% Jan‐18 4,879 3,851$ 545,055.00 79% 157 104$ 30,041.00 122 88$ 25,966.00 279 192$ 56,007.00 291.70$ 69% 4,600 3,659$ 489,048.00 133.66$ 80% 11% Feb‐18 4,404 3,891$ 563,683.00 88% 140 63$ 17,161.00 108 58$ 16,422.00 248 121$ 33,583.00 277.55$ 49% 4,156 3,770 $ 530,100.00 140.61$ 91% 42% Mar‐18 4,891 4,246$ 598,496.00 87% 155 97$ 24,790.00 124 80$ 20,124.00 279 177$ 44,914.00 253.75$ 63% 4,612 4,069$ 553,582.00 136.05$ 88% 25% Apr‐18 4,442 3,493$ 471,581.00 79% 140 56$ 14,794.00 112 59$ 15,108.00 252 115$ 29,902.00 260.02$ 46% 4,190 3,378$ 441,679.00 130.75$ 81% 35% May‐18 4,135 3,487$ 506,252.00 84% 150 90$ 27,125.00 124 87$ 22,522.00 274 177$ 49,647.00 280.49$ 65% 3,861 3,310 $ 456,605.00 137.95$ 86% 21% Jun‐18 4,233 3,477$ 487,001.00 82% 127 67$ 17,973.00 120 71$ 20,960.00 247 138$ 38,933.00 282.12$ 56% 3,986 3,339$ 448,068.00 134.19$ 84% 28% Jul‐18 4,511 3,878$ 531,135.00 86% 124 84$ 24,318.00 120 57$ 14,920.00 244 141$ 39,238.00 278.28$ 58% 4,267 3,737$ 491,897.00 131.63$ 88% 30% Aug‐18 4,788 4,187$ 565,119.00 87% 124 83$ 20,867.00 112 51$ 14,168.00 236 134$ 35,035.00 261.46$ 57% 4,552 4,053$ 530,084.00 130.79$ 89% 32% Sep‐18 4,668 4,170 $ 556,579.00 89% 120 83$ 22,696.00 116 73$ 19,122.00 236 156$ 41,818.00 268.06$ 66% 4,432 4,014 $ 514,761.00 128.24$ 91% 24% Oct‐18 4,881 4,265$ 570,083.00 87% 124 81$ 20,812.00 120 55$ 15,621.00 244 136$ 36,433.00 267.89$ 56% 4,637 4,129$ 533,650.00 129.24$ 89% 33% Nov‐18 4,713 4,350 $ 598,898.00 92% 116 77$ 21,787.00 108 60$ 17,853.00 224 137$ 39,640.00 289.34$ 61% 4,489 4,213$ 559,258.00 132.75$ 94% 33% Dec‐18 4,869 4,128$ 540,199.00 85% 124 109$ 30,127.00 124 49$ 13,029.00 248 158$ 43,156.00 273.14$ 64% 4,621 3,970 $ 497,043.00 125.20$ 86% 22% BNB Submission 81

Total Thouse Hotel Operation Rms Avl Rms Sold Total Rev ADR$ Occ% Rms Avl Rms Sold Total Rev ADR$ Occ% 2015 54,121 38,815 7,066,792 2,184 1,397 432,981 1,805 1,031 332,598 3,989 2,428 765,579 315.31$ 61% 191.922537 2015 50,132 36,387 6,301,213 173.17$ 73% 125.69$ 2016 58,881 43,582 6,984,944 2,178 1,295 396,181 1,760 842 256,324 3,938 2,137 652,505 305.34$ 54% 165.694515 2016 54,943 41,445 6,332,439 152.79$ 75% 115.25$ 2017 58,141 47,581 7,027,958 2,190 1,331 366,480 1,790 992 272,574 3,980 2,323 639,054 275.10$ 58% 160.5663317 2017 54,161 45,258 6,388,904 141.17$ 84% 117.96$ 2018 55,414 47,423 6,534,081 1,601 994 272,491 1,410 788 215,815 3,011 1,782 488,306 274.02$ 59% 162.1740286 2018 52,403 45,641 6,045,775 132.46$ 87% 115.37$

Townhouse occupancy cost compared to hotel 2015 12% 467.3112383$ 147,349.12 2016 21% 833.5405602$ 254,510.71 2017 25% 1002.766511$ 275,859.64 2018 28% 840.465336$ 230,305.42 $ 908,024.90