April 22, 2020

Whilst acknowledging first and foremost that COVID-19 represents an unprecedented global health crisis, this challenging event has brought unprecedented pressure on the hotel sector as a whole. To help identify the business impact of COVID-19, CBRE Hotels in Australia and New Zealand has conducted an on-line survey of a number of key market participants ranging from investors, owner-operators, developers and operators in order to gauge current market sentiment across the industry.
The results of the survey provide an interesting insight into how industry stakeholders are currently responding to COVID-19, as well as some of the likely longer-term implications arising from the crisis.

Key Insights:

  • Respondents believe that operators should focus on ensuring cashflow and business continuity as key short-term planning measures to manage the impacts of COVID-19.
  • Over half of the respondents have identified reducing operating costs and seeking other income sources as a primary response to the current crisis.
  • Not surprisingly, investor appetite has softened, with 28 per cent of respondents likely to invest less in the sector relative to December last year.
    Almost 90 per cent of respondents anticipate that banks will hold off on acting on assets under pressure and adopt a ‘wait and see’ approach in the interim. 
  • 38 per cent believe, however, that the crisis will trigger substantial financial stress in the sector with medium/longer-term implications.
  • Nearly three-quarters of respondents expect the crisis to result in a negative RevPAR impact by 30 per cent or more in 2020 across major cities in Australia.
  • Over half of respondents expect a decline of 10 per cent or more in capital city hotel values over the next six months with 33% expecting declines to exceed 15%.
  • Three-quarters of respondents expect new development projects to be put on hold with feasibility and funding issues likely to them strike out in the current environment.

Click Here to view the full report.


Chinmay Chitale
Research Manager
Head of Hotels Research 
[email protected]

Troy Craig 
Regional Director
Valuation & Advisory
[email protected]