Gold Coast hotels miss Comm Games targets
Gold Coast hotels failed to achieve their much-anticipated 100% room occupancies during the 2018 Commonwealth Games but hoteliers increased room rates by an average of nearly 77% during the sporting festival as domestic and international travellers sporting fans hit the region.
The highest occupancies occurred on the night of the Commonwealth Games closing ceremony on April 15 with nearly 93% of Gold Coast hotels occupied.
Gold Coast hotels, which are dominated by the Mantra Group in South East Queensland, achieved average occupancies during the April 4 to April 15 event of 86.6%, well short of the average occupancies achieved during the 2014 Commonwealth Games in Glasgow of 95.7%, according to STR Global figures released yesterday.
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However, with different market sizes the Gold Coast sold 99,466 more room nights than Glasgow.
The average daily room rate of $347.38 achieved during the Commonwealth Games was a 76.7% jump over the 12-day period compared with the same period in 2017 on the Gold Coast.
Some of Australia’s Commonwealth Games athletes. Picture: MEGA.
Revenues per available room, the standard industry measure, exceeded 100% on most nights during the Commonwealth Games with the peak level on the opening night achieving revenue growth of 205.4% to average $294.26 per room compared to the same period last year.
“While it’s encouraging to see that Queensland hotels capitalised on the Commonwealth Games, the lasting legacy could have an even greater impact on the market’s future,” says Matthew Burke, STR’s Pacific manager in a statement yesterday.
“As Southeast Queensland continues exploring the prospect of bidding to host the 2032 Olympics, the results of this year’s Commonwealth Games will likely play a big role in the ultimate decision.”
Gold Coast hotels have struggled since the Dreamworld tragedy in 2016 when four patrons were killed on the Thunder River Rapids ride.
Meanwhile, the Mantra Group of hotels has been sold to French hotel giant Accor in a deal worth about $1.2 billion. The competition regulator recently approved the deal which is set to take effect on May 23.
This article originally appeared on www.theaustralian.com.au/property.
