THE Perth and Darwin hotel markets have recorded an increase in demand, despite the slowdown in the tourism sector over the past year, according to Colliers International.
Colliers’ latest Hotels INNvestment Report – Autumn 2009 found Perth’s average nightly rate for a hotel room escalated by 19.5% over the 12 months to December 2008. The average nightly rate for a hotel room was $159.36, which grew by 19.5%. The city also experienced an increase in demand by 5.6%. The strongest improvement in average room rates was also recorded for Perth, which rose by 19.5% to $159.36.
Darwin was another standout city, recording the strongest demand in accommodation, up by 9.3%. It also recorded the highest occupancy improvement, with a rise of 1.1% to 74.9%, and strong RevPAR growth of 12.7%, increasing to $105.01.
Colliers’ national director of hotels and leisure Michael Thomson said the strong performances resulted primarily from the resources sector.
“Darwin in particular holds a cross section of key drivers including being a regional government and defence location, a tourist destination and strong infrastructure investment,” he added.
Hotel Markets Summary Table – 12 Months to December 2008
Cities | Revenue Per Available Room (RevPAR) | Changes in Demand (Room Nights Sold) | Occupancy | Changes in Average Room Rates |
Sydney | $148.61 | ¯0.5% | 80.5% | 3.0% |
Melbourne | $137.72 | ¯0.2% | 80.4% | 6.1% |
Brisbane | $115.15 | 5.7% | 78.0% | 7.1% |
Perth | $131.15 | 5.6% | 82.3% | 19.5% |
Darwin | $105.01 | 9.3% | 74.9% | 11.1% |
Cairns | $74.13 | ¯6.9% | 61.9% | ¯0.9% |
Gold Coast | $91.24 | ¯2.3% | 67.1% | 4.0% |
Adelaide | $109.97 | 0.4% | 77.3% | 7.6% |
Source: Colliers International/ABS Research
Meanwhile in Sydney, average room rates eased by 3% to $184.69 and it experienced a slight decrease in room nights sold.
Thomson predicts that once the economy recovers, Sydney’s hotel performance will be one of the quickest to recover.
“This is because there is limited hotel supply on the horizon and any improvement in demand should result in immediate RevPAR gains for hoteliers,”
In Melbourne, room nights sold remained the same as the events calendar is expected to maintain the city’s strong demand for accommodation in the medium to long-term. But occupancy decreased marginally, by 0.7% to 80.4%. Average room rates experienced solid improvement, up by 6.1% to $171.20.
The Brisbane hotel market experienced the second-highest demand for accommodation in Australia, underpinned by a strong resources sector, rising 5.7% increase in room nights sold. However, occupancy was down 2.4% to 78%.
Thomson said whilst hotel trading conditions in Brisbane CBD will be slower this year, the city is well placed to bounce back quickly when the economy improves. In addition, there is limited new hotel development in the pipeline and existing hotels will see the benefits of increased demand.
Cairns has been through a poor performing year characterised by falling hotel occupancy rates of 5.7% to 61.9%, and the lowest recorded RevPAR, which fell by 9.3% to $74.13.
Australian Property Journal
