PREDICTIONS
PUB LEADERS REVEAL THEIR 2019 PREDICTIONS FROM PUB PROPERTY TO THE STATE OF SUPER, OUR PUB LEADERS REVEAL THE INDUSTRY’S LIKELY DIRECTION OF TRAVEL THIS YEAR
PUB PROPERTY There will be continued interest in A-grade gaming hotels with considerable size and scale. Resource-centric areas are seeing a renewal and revitalisation as mining comes back on-line. These areas provide a softer yield, a better initial return and scope for strong bottom line improvement as the macro economy in these areas grows. Solid performing hotels lying outside key metropolitan areas with sound fundamentals will continue to attract strong interest from discerning buyers priced out of economic centres such as Sydney, NSW. Coastal and key regional centres will be in the spotlight in 2019. We will continue to see the banks’ lending parameters tighten and the cost of debt (outside of the Reserve Bank cash rate) increase – the knock-on effect will be groups seeking alternate funding options than the traditional four banks. Paul Fraser and Ben McDonald, Directors, CBRE
HOSPO SUPER As industry super’s total funds under management have eclipsed the retail sector’s, industry or not-for-profit super funds are increasingly taking a leadership position in the broader Australian economy. We believe the opportunity may finally be emerging to collaborate between the business community, the super sector, and both State and Federal Governments.
30 | FEBRUARY 2019 AUSTRALIAN HOTELIER
“There's a lot of heat on operators to work within the laws and it's very important right now to be on top of that” – Lawrence Dowd We remain hopeful of advancing the use of superannuation in nation-building infrastructure assets, by directly approaching government with innovative proposals to invest in both brown-field and green-field infrastructure assets. This includes a current proposal to the Victorian government to fund a $15 billion redevelopment of a rail line linking Melbourne’s Tullamarine airport and Southern Cross train station in the city. With the superannuation sector tipped to grow to three times the size of Australia’s GDP by 2030, we have huge opportunities to build this country, and we should be working together to do it. David Elia, CEO, Hostplus
FINANCIAL FOCUS 1. An abundant debt market with greater access to low cost, more flexible debt for business. 2. A stable and collaborative regulatory environment, which will see a commitment to improving social outcomes and advancing technologies that will enhance customer experiences.
3. The investment in suburban communities at all levels of industry and government – providing social hubs for the communities and solidifying hotels as the cornerstone of their local communities. We will take advantage of an abundant debt market and continue our prudent use of capital, taking a growth mindset to our portfolio management strategy through acquisition and divestment. We will also continue our focus on the application of growth capital through refurbishment to our local community hotels, providing greater facilities for our customers to enjoy for their social, entertainment and leisure needs. Dan Brady, CEO, Redcape
STELLAR STAFF Focusing on staff retention and development will be even more important, ensuring that we’re meeting that level of expectation with staff and also the consumer. The staff side of things is really important, there’s a lot of heat on operators to work within the laws and it’s very important right now to be on top of that. Ensuring that innovation is number one, equally you’re doing things that are leading not following. What was good last year is not necessarily adequate for next year. Lawrence Dowd, National General Manager, Colonial Leisure Group