Meriton puts serviced apartments on ice as COVID-19 bites
Multi-billionaire Harry Triguboff says apartment sales are still substantial, but the rental income from his vast portfolio of residential units has plummeted at least 10%.
The Meriton founder also revealed on Monday that he has been forced to temporarily shut another four of his serviced apartment towers on the eastern seaboard because of the lack of tourists due to COVID-19.
Triguboff has now closed nearly half of the 20 serviced apartment towers he owns and operates in Brisbane, the Gold Coast and the Sydney CBD.
He is not alone, with Accor’s chief operating officer Simon McGrath conceding last Friday that the French-owned accommodation behemoth had temporarily shut 60 hotels of its 400-strong portfolio of accommodation in Australia and New Zealand.
Across the board hotel and resort occupancies have fallen below 10%.
“Serviced apartments are very weak. I told you I closed four (serviced apartment towers down); I am going to close another four down. I have 5000 serviced apartments, probably 3000 are open and 2000 are empty.”