The $1.3 billion takeover of Australia’s biggest accommodation operator Mantra Group by French giant Accor, creating an Australian hotel giant, Accor-Mantra, will set the tone for what will be another strong year for the country’s hotel sector as overseas visitor numbers, especially from China, head for record heights.

This and other recent hotel mergers and deals are part of a power struggle between the major hotel chains and the digital disrupters led by Airbnb and OTAs like Expedia, Booking.com and TripAdvisor.

 

According to CBRE Hotels’ annual Check IN report, lifestyle hotels are emerging as the next growth sector in Australia as hotel owners recognise the threat of Airbnb and the changing accommodation preferences of Millennials and Generation Z. Airbnb now has around 115,000 private rooms and whole homes on offer in Australia and counts Sydney and Melbourne among its fastest growing markets globally.

 

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