Room rates boom at north Queensland hotels
Cairns and north Queensland hotels posted the highest growth in average room rates at nearly 9% last year, but occupancies dwindled in Perth, slumping 4.6%.
Melbourne, the Gold Coast and Hobart also lost occupancies by at least one percentage point, according to the Deloitte Tourism and Hotel Market Outlook released today.
Darwin’s occupancies grew the fastest of any capital city, touching nearly 9% last year. But the city’s future growth prospects are expected to soften as demand slows.
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Nationally, room rates grew a total of 2.4% last year to $161, paving the way for solid revenue per available room growth of 3% during 2017, says Deloitte partner Adele Labine-Romain.
“Looking ahead for the hotel sector, Australia will see a significant number of new properties coming online which will have a strong impact on the market,” Labine-Romain says.
At least 50 hotel projects are under way in Melbourne, for instance, but it is not the only city to be on the cusp of sustaining big increases in accommodation. By 2019 and 2020 the new development will add 3.4% to total supply each year.
But because of the increased number of hotel rooms available, particularly in 2019 and 2020, there will be limited opportunities for further occupancy growth in the next three years.
“As a result of the strong pipeline of new properties, minimal change in occupancy will be realised, with an increase of only 0.3% added to occupancy rates each year until 2020,” Labine-Romain says, adding that the debut of the Ritz Carlton, W Hotels and Mandarin brands in the next few years will help push up average daily rates. She believes room rates will grow at almost 3% a year.
This article originally appeared on www.theaustralian.com.au/property.
