Perth Hotel DevelopmentPipeline Report

December 2017

Perth CBD Monthly Hotel Performance

Source: STR Global – based on a sample of 33 hotels, December 2017

Month Occupancy ADR RevPAR

Year – over – Year *

Occupancy% change

ADR% change

RevPAR% change

Dec-16 76.2% $173.12 $131.98 -1.7% -8.9% -10.5%

Jan-17 75.4% $166.32 $125.42 0.1% -4.3% -4.2%

Feb-17 82.1% $179.11 $147.09 -4.1% -12.0% -15.6%

Mar-17 84.2% $175.39 $147.65 -0.1% -9.4% -9.5%

Apr-17 77.2% $164.47 $127.05 -8.7% -22.8% -29.5%

May-17 81.5% $171.76 $140.05 1.2% -5.4% -4.3%

Jun-17 75.6% $157.90 $119.44 -4.7% -9.5% -13.7%

Jul-17 78.5% $156.72 $123.04 -0.3% -7.1% -7.3%

Aug-17 82.9% $166.58 $138.02 0.2% -3.8% -3.7%

Sep-17 82.0% $159.82 $131.03 -10.4% -15.2% -24.1%

Oct-17 85.5% $168.85 $144.45 -1.4% -10.6% -11.8%

Nov-17 87.9% $168.33 $147.94 -1.2% -13.4% -14.4%

Dec-17 77.5% $182.93 $141.68 1.6% 5.7% 7.4%

* Note: The percentage change displayed beneath the monthly hotel performance chart will reflect the change from the same month in the previous year (year-on-year growth).

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

75%

86% 84% 85%81% 79% 79%

83%92%

87% 89%

76%75%82% 84%

77%82%

76% 79%83% 82% 86% 88%

77%

0%

20%

40%

60%

80%

100%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Room Occupancy (%)2016 2017

174

204193

213

182 174 169 173189 189 194

173166179 175

164 172158 157

167 160169 168

183

$0

$50

$100

$150

$200

$250

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Average Daily Rate ($AUD)

2016 2017

Perth CBD Historical Hotel Performance

Source: STR Global – based on a sample of 33 hotels, December 2017

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

Year Occupancy ADR RevPAR

Year - over - Year

Occupancy

% change

ADR

% change

RevPAR

% change

2011 83.9% $201.56 $169.10

2012 85.0% $222.72 $189.41 1.4% 10.5% 12.0%

2013 84.0% $214.03 $179.77 -1.2% -3.9% -5.1%

2014 84.1% $204.26 $171.73 0.1% -4.6% -4.5%

2015 83.2% $200.00 $166.39 -1.1% -2.1% -3.1%

2016 82.8% $185.84 $153.94 -0.4% -7.1% -7.5%

2017 80.8% $168.50 $136.14 -2.5% -9.3% -11.6%

Note: “% change” results indicate the percentage change (growth or decline) from the previous yearADR - Average daily rateRevPAR - Revenue per available room

70%

75%

80%

85%

90%

95%

100%

$0

$50

$100

$150

$200

$250

2011 2012 2013 2014 2015 2016 2017

ADR RevPAR Occupancy

Elizabeth Quay

Australian Cities Comparison

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

Source: STR Global - Australia New Zealand Hotel Review data, December 2017

Alex Hotel Rooftop

$100

$120

$140

$160

$180

$200

$220

$240

$260

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Monthly Hotel Average Daily Rate 2017

Perth Australia Melbourne Sydney

62%

67%

72%

77%

82%

87%

92%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Monthly Hotel Occupancy Rate 2017

Perth Australia Melbourne Sydney

PerthAustralia

Melbourne

Sydney

65%

70%

75%

80%

85%

90%

95%

$155 $165 $175 $185 $195 $205 $215 $225 $235

Hotel Occupancy Rate (%) and Average Daily Rate ($) 2017

More expensive and higher congestion

Improved affordabilityand reduced congestion

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

Australian Cities Comparison

PERTH AUSTRALIA MELBOURNE SYDNEY

Year Occ. ADR Occ. ADR Occ. ADR Occ. ADR

2011 84.3% $ 197.88 73.2% $ 170.08 75.6% $ 175.21 82% $ 184.79

2012 84.5% $ 218.00 73.9% $ 175.33 77.5% $ 176.02 81% $ 189.18

2013 83.3% $ 210.13 74.2% $ 178.50 80.0% $ 182.33 83% $ 195.68

2014 82.5% $ 200.05 74.6% $ 179.92 81.0% $ 184.54 84% $ 199.60

2015 81.6% $ 196.86 75.6% $ 183.31 82.9% $ 186.99 85% $ 211.95

2016 79.0% $ 183.34 75.7% $ 184.65 83.4% $ 184.94 85% $ 220.50

2017 75.0% $ 169.45 76.2% $ 187.32 83.1% $ 185.52 86% $ 230.13

Source: STR Global - Australia New Zealand Hotel Review data, December 2017

New HotelsCBD

Greater Perth

MetroTotal

Hotels Rooms Hotels Rooms Hotels Rooms

Completed 2012 to date 15 1,606 7 635 22 2,241

Committed & Under Construction 9 2,369 3 416 12 2,785

Total 24 3,975 10 1,051 34 5,026

Perth Hotel Development Pipeline Overview

Source: Tourism WA Analysis

Redevelopments & RenovationsCBD

Greater Perth

MetroTotal

Hotels Rooms Hotels Rooms Hotels Rooms

Completed 2012 to date 2 - 2 86 4 86

Committed & Under Construction 1 40 1 139 2 179

Total 3 40 3 225 7 265

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

COMO The Treasury

Total New or RedevelopedCBD

Greater Perth

MetroTotal

Hotels Rooms Hotels Rooms Hotels Rooms

Completed 2012 to date 17 1,606 9 721 26 2,327

Committed & Under Construction 10 2,409 4 555 14 2,964

Total 27 4,015 14 1,276 43 5,291

Project Name Year Opened Scale Total # of Rooms

Fraser Suites Perth * 2012 Luxury 236

The Terrace Hotel 2012 Upscale 15

Baileys Serviced Apartments * 2014 Independents 25

The Nest on Newcastle 2015 Independents 20

Alex Hotel 2015 Independents 74

COMO The Treasury 2015 Luxury 48

Attika Hotel * 2015 Independents 22

Citylights Hotel 2015 Independents 46

Quest West Perth * 2016 Upscale 72

Sage Hotel West Perth 2016 Independents 101

Quest Mounts Bay Road * 2016 Upscale 71

Quest East Perth * 2016 Upscale 130

Peppers Kings Square Hotel 2016 Upper Upscale 120

Crown Towers Perth 2016 Luxury 500

Tribe Perth 2017 Independents 126

Total Completed 1,606

Serviced apartments are included in the pipeline and marked with an (*) .

Crown Towers

New Perth CBD Hotel Openings (completed since 2012)

Source: Tourism WA Analysis

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

New Hotels in Perth CBD: Committed & Under Construction

Committed hotels included in this pipeline meet the following requirements are Complete, Under Construction and/or the WA government is actively involved in the project.

Serviced apartments are included in the pipeline and marked with an * .

Project Name Status

Expected

Completion

Date

ScaleTotal # of

Rooms

The Westin Perth (FESA House) Under Construction 2018 Upper Upscale 368

DoubleTree by Hilton, Northbridge Under Construction 2018 Upscale 206

DoubleTree by Hilton, Perth Waterfront Under Construction 2019 Upscale 229

QT Hotel Perth Under Construction 2018 Upper Upscale 184

Ritz-Carlton (Elizabeth Quay) Under Construction 2019 Luxury 204

Mantra Perth Metro Under Construction 2019 Upscale 250

EQ West Hotel (AAIG & Fini Group) Committed 2019 190

Dorsett Hotel (Perth) Committed 2020 Upscale 250

Unnamed Hotel (NV Apartments) Under Construction 2019 Independent 488

Total Committed & Under Construction 2,369

Westin Aerial View

Hotel Refurbishments / Renovations / Rebrandings in Perth CBD

Project Name Status

(Expected)

Completion

Date

Scale

Old #

of

Rooms

Total #

of New

Rooms

Total #

of

Rooms

Holiday Inn Perth City Centre Renovated 2016 Upper Midscale 181 5 186

InterContinental Perth City Renovated 2017 Luxury 245 (5) 240

Total Rooms Back on Market 426 - 426

The Melbourne Hotel Under Construction 2018 Independents 33 40 73

Total Committed & Under Construction 33 40 73

Source: Tourism WA Analysis

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017

Project Name Status

(Expected)

Completion

Date

ScaleOld # of

Rooms

Total #

of New

Rooms

Total #

of Rooms

Country Comfort Inter

City PerthExpanded 2015 Upper Midscale 99 62 161

Be.Fremantle * Expanded 2017 Independents - 24 24

Total Rooms Back on Market 99 86 185

Comfort Inn Bel Eyre Under Construction 2018 Upper Midscale 75 139 214

Total Committed & Under Construction 75 139 214

New Greater Perth Metro Hotel Openings (completed since 2012)

Project Name Open Date Scale Total # of Rooms

Hougoumont Hotel – Stage One 2013 Independents 37

Quest Rockingham * 2015 Upscale 96

Seashells Fremantle 2016 Independents 24

Quest Fremantle * 2016 Upscale 122

Aloft Perth 2017 Upscale 224

Ramada VetroBlu Scarborough Beach Hotel 2017 Midscale 52

Quest Innaloo * 2017 Upscale 80

Total Completed 635

Hotels in the Greater Perth Metro: Committed & Under Construction

Committed hotels included in this pipeline meet the following requirements are Complete, Under Construction and/or the WA government is actively involved in the project.

Serviced apartments are included in the pipeline and marked with an * . The Hampton Inn by Hilton at Cockburn Central is comprised of 122 hotel rooms and 24 services apartments.

Project Name Status

Expected

Completion

Date

Scale

Total #

of

Rooms

Park Regis Subiaco Under Construction 2018 Upper Midscale 168

Quest Midland * Under Construction 2018 Upscale 102

Hampton Inn by Hilton at Cockburn Central Under Construction 2019 Upper Midscale 146

Total Committed & Under Construction 416

Hotel Refurbishments & Rebranding in the Greater Perth Metro

Source: Tourism WA Analysis

PERTH HOTEL DEVELOPMENT PIPELINE REPORT

DECEMBER 2017