HOTEL owners just can't stop smiling and little wonder, according to Jones Lang Lalle Hotels' latest Hotels' Digest research, RevPAR.
Here JLL breakdown the latest hotel data state-by-state.
”Over the next five years, we expect occupancies to remain in the high 70% range as demand growth largely keeps pace with only modest increases in supply,” JLL’s Troy Craig said.
“With high market-wide occupancies, operators have an opportunity to achieve consistent and significant rate growth, with stronger growth in the short term.”
Demand growth is also expected to remain strong supported by the resources boom, which is stimulating additional travel to
Achieving the highest quarterly occupancy and Average Daily Rates (ADR) levels on record,
The lack of available sites, high construction costs and current strength of the office sector are likely to continue to defer new hotel development in the short to medium term.
During the March quarter 2007,
“With demand growth expected to remain modest, occupancies should stay high at around 78-80%, albeit declining slightly over the five-year period. In line with the positive supply/demand outlook, ADR growth will remain strong, particularly in the short term. As a result, the
A 2.4% increase to room supply in
“New supply that opened prior to the Commonwealth Games is expected to remain fully absorbed giving hotel operators the opportunity to achieve rate growth over the next five years,” Craig said.
A couple of large hotel projects are already under construction or proposed, timed to coincide with the opening of the new Convention Centre in 2009.
“We expect that the opening of the new Convention Centre in 2009 will consolidate
While
“
Room rates however increased by 3.2% during the March quarter 2007.
“In line with relatively flat occupancy profile, we expect ADR and RevPAR growth to remain in line with historical averages increasing by around 3% per annum over the next five years,” said Ms Wales. As a fly-to destination,
“As the region grows as a destination in its own right, it should benefit further from the expansion of the low cost travel network across Asia given its relative proximity,”
This was evidenced by the recent introduction of charter flights from
“Gold Coast benefited from a slight reduction in room supply and recorded the strongest quarterly occupancy level (74.3%) since 1996,” the JLL research added.
However accommodation trading performance on the Gold Coast is expected to remain relatively flat over the next five years.
“Room rate growth should continue for the next couple of years, however our forecasts do not anticipate that rates will reach previous highs in real terms,”
She added that occupancies are expected to increase to around 70% before serviced apartment supply projects currently under construction come on line in 2008.
The seasonal nature of the market and dependence on leisure travellers means that occupancy levels on the Gold Coast are typically lower than those achieved in other Australian capital cities.
However, the Council is seeking to position the city as a place to do business as well as a holiday destination.
“The ACT currently enjoys some of the strongest demand levels in the country, boosted by both the corporate and weekend leisure segments,”
Tourist Accommodation Performance – March Quarter 2007 | |||||||
% Change^ in RNO | Occupancy | % Change^ | ADR | % Change^ | RevPAR | % Change^ | |
4.8% | 84.1% | 5.9% | $127.84 | 16.0% | $107.51 | 22.9% | |
8.5% | 74.6% | 6.1% | $129.64 | 12.8% | $96.71 | 19.7% | |
9.3% | 56.6% | 9.9% | $100.63 | 8.6% | $56.96 | 19.3% | |
9.0% | 85.8% | 7.7% | $182.21 | 8.0% | $156.34 | 16.3% | |
9.4% | 79.1% | 4.6% | $137.51 | 9.8% | $108.77 | 14.9% | |
Gold Coast TR | 2.2% | 74.3% | 4.4% | $133.04 | 7.5% | $98.85 | 12.2% |
-0.9% | 78.8% | 0.3% | $135.11 | 8.6% | $106.46 | 8.9% | |
7.2% | 82.5% | 4.7% | $162.07 | 1.1% | $133.65 | 5.9% | |
-4.1% | 83.6% | -3.7% | $128.95 | 6.8% | $107.80 | 2.8% | |
-4.0% | 62.0% | -4.5% | $110.11 | 3.2% | $68.27 | -1.4% | |
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