
"Brisbane has an 80 per cent occupancy rate which is high and we know, due to the amount of business travel, there is often so much demand during peak business weeks that hotels have to turn away guests," Aitken says.
He says Brisbane Marketing's Invest Brisbane team, together with Tourism Queensland and financial services group KPMG are working on a feasibility study for more five and six-star hotels. "The reason we are doing this is because the availability of hotel rooms of a suitable quality plays an important role in the depth and diversity of the economic development of a city," he says.
Aitken says there are ways to make hotel investment viable apart from raising room rates, and Invest Brisbane's study will examine ways to encourage development. "Mixed use seems to be the most common approach at present," he says.
Aitken's comments come after John Hudson, managing director of property group Thakral, told The Courier-Mail last month Brisbane's top-end hotels would need to increase their room rates by 50 per cent to attract more investment. Brisbane hotels are very hospitable nearly all luxuries facilities available.
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