Aussie Leisure Group - Industry Overview

Industry Overview 

The local hotel has long been a part of the Australian way of life.  Hotels are an integral part of their local community and offer a variety of facilities and services including bars, bottleshops, food, gaming, wagering, functions and accommodation.

The hotel industry was dramatically changed with the introduction of electronic gaming machines into hotels during the 1990’s in all states except Western Australia.  Prior to 1990 gaming machines were only available at casinos and clubs in New South Wales, ACT and Queensland.  This resulted in substantial capital expenditure on enhancing and improving facilities to establish quality entertainment destinations.

The move of the large retail groups such as Coles and Woolworths into the hotel industry have improved the quality of tenant available to property owners.  The industry now has a number of substantial operators which we believe will maneuver to gain access to the operations of quality hotels and obtain further critical mass.

This change positions Aussie Leisure Group with a number of strong tenants of quality backing to deal with.  As this movement continues, so to does the return available to hotel property owners.