Accor boss Simon McGrath warns of 21,000 empty hotel rooms if Qld borders stay mostly shut
The boss of Australia’s biggest hotel group Accor has issued a stark warning about Queensland’s border shutdown, saying unless things dramatically change, there could be 21,000 empty rooms over summer. He says that would force Accor to close some venues.
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HOTEL WARNING
The boss of Australia’s biggest hotel group has weighed in heavily on the highly polarising matter of Queensland’s border shutdown.
Simon McGrath, chief operating officer of Accor’s Pacific arm, warned on Tuesday that more than 21,000 hotel rooms and apartments could sit empty over summer without dramatic change.
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That amounts to in excess of 70 per cent of the state’s 30,000 rooms and units.
As a result, he flagged the possible closure of some Accor venues in the first half of next year if the uncertainty lingers on.
“The current border restrictions mean that Queensland will miss out on the summer dollar, a crucial period for local businesses, the economy and jobs,’’ McGrath said.
“Now is when people are booking visits for the next 3 to 6 months and if they don’t have certainty that Queensland will be open, then Queensland will miss the surge in travel and fall behind other states. Queensland could go from leadership to last in the race for tourism.’’
McGrath launched his broadside before Premier Annastacia Palaszczuk announced an easing of restrictions starting October 1, when five NSW border areas will be granted access to the state.
But, like other tourism-dependent operators, McGrath is emphatic that the walls need to come all the way down to spur economic recovery.
His French-owned global group operates about 380 venues across Australia, ranging from budget to luxury. Brands include such well-known names as Novotel, Sofitel, Pullman, Peppers and Mantra.
It’s a key part of Queensland’s tourist industry, which contributes about $25bn a year to the state economy and employs more than 200,000 workers directly and indirectly.
Accor has been smashed by COVID-19, with some venues struggling with occupancy rates below 10 per cent. About 70 of its properties shut the doors at the height of the lockdown earlier this year.
“We are urging the State Government to use common sense, provide clarity and safely
open up borders, which will set Queensland up for a stronger 2021 and save jobs,’’ McGrath said.
“As soon as we are certain of a border reopen date, Queensland should prepare for a big summer boom.’’
JOINT VENTURE
Two seasoned Brisbane bizoids have teamed up to form a new joint venture aimed at helping mid-market business owners sell their companies.
Brett Plant and Garry Stephenson first started collaborating about five years ago.
But this week we learned they just recently created a new company, AP Lloyds, and are in the process of applying for a financial services license.
Plant, who only launched his Advisory Partner business in April, comes to the party after a lengthy career in town that included long stints at accounting mobs Moore Stephens and PKF.
Stephenson, meanwhile, heads up Lloyds Business Brokers and has been active in the industry since the early 90s. He got an early start in the business world, buying the first of several news agencies when he was only 24.
The pair plan to target businesses priced between $1m and $50m, with an expectation that the pandemic will dramatically increase interest from both sellers and buyers.
Plant told us that he anticipates plenty of mergers and sales in the months ahead, with a significant number of cashed up buyers waiting in the wings.
He thinks lots of overseas companies will be looking to offload their Australian businesses to focus on core interests closer to home.
If history is any guide, Plant believes there will be some parallels to the two years or so after the GFC. That’s when a heap of private equity deals were done, with astute buyers picking up assets at what now seem like crazy prices.