International Buyers of Perth Hotels: Understanding Australian Foreign Investment Rules
Australian hotels and accommodation assets can attract interest from international investors.
For Perth hotel owners considering a broader buyer campaign, overseas interest can expand the potential purchaser pool, but foreign-investment requirements need to be understood early.
Australia's foreign-investment framework allows the Treasurer to review certain investments and, depending on the circumstances, not object, impose conditions, prohibit a proposal or require an acquired interest to be disposed of.
A Hotel Acquisition Can Involve More Than One Type of Investment
A hotel transaction may involve:
Australian land
an operating business
shares or units in an owning entity
business assets
combinations of these.
Different foreign-investment rules can therefore become relevant to different transaction structures.
Commercial Land Rules May Apply
Australian foreign-investment guidance specifically deals with commercial accommodation facilities under the commercial-land framework.
Foreign investors are generally required to notify the Treasurer before acquiring certain interests in commercial land when the investment exceeds the applicable threshold.
The applicable position varies according to factors including the investor, property and transaction.
Sellers should therefore avoid quoting one universal FIRB threshold to every international buyer.
Buying the Business Can Also Matter
Foreign investment regulation does not apply only to land.
Current government guidance states that foreign investors may also be required to notify the Treasurer before acquiring interests in Australian businesses, corporations, trusts or business assets.
This can be particularly relevant where the hotel business and the real estate are held or sold through different structures.
Foreign Government Investors Have Additional Requirements
Foreign government investors can face additional notification requirements compared with many private foreign investors.
Again, the correct approach is to obtain advice specific to the purchaser rather than assuming that rules applying to one overseas investor apply to another.
Allow Time for the Process
Where foreign-investment approval or notification is required, the purchaser and their advisers need enough time to prepare the application and deal with any conditions.
Foreign-investment considerations should therefore be identified before a transaction reaches an urgent settlement timetable.
The sale contract should be prepared by the parties' legal advisers with any necessary approval conditions properly addressed.
Registration Obligations May Also Apply
Separate from pre-acquisition review, foreign persons can have notification obligations relating to the Register of Foreign Ownership of Australian Assets after certain actions involving land, businesses and other Australian assets.
This is another area where specialist professional advice is important.
International Marketing Still Needs Qualified Buyers
International exposure does not mean marketing indiscriminately.
A serious overseas purchaser should be able to demonstrate:
identity and investment structure
financial capacity
acquisition strategy
funding position
professional advisory support
understanding of Australian regulatory requirements.
This allows the seller to distinguish genuine purchasers from speculative enquiries.
Norton’s Resort Brokers can assist Perth accommodation owners with targeted Australian and international buyer outreach while purchasers obtain their own foreign-investment, legal, taxation and financial advice.
Frequently Asked Questions
Can a foreign investor buy a hotel in Perth?
Foreign investors can invest in Australian hotels, but notification or approval requirements may apply depending on the investor and transaction.
Is there one FIRB threshold for every hotel purchase?
No. Thresholds and requirements can differ according to the type of investment and investor.
Should foreign-investment issues be checked before signing a contract?
Yes. A purchaser should obtain specialist advice early so any required approval conditions can be dealt with properly.
Disclaimer: General information only and current to September 2026. It is not foreign-investment, legal, taxation or financial advice. Requirements and thresholds depend on the investor and transaction and can change. Buyers and sellers should obtain current specialist advice and confirm requirements with the Australian Government.