hospitalitybiz.org

A combination of record occupancy levels and higher hotel room rates has seen hotel revenues increase by 8% during 2006 across Australia with Perth showing the strongest growth of all.

The newly released Australian Bureau of Statistics (ABS) accommodation data indicates that during 2006 Australia’s major hotel markets recorded the highest RevPAR (Revenue Per Available Room) result on record.

Hoteliers in Perth have been quick to capitalise on an increasingly affluent market whereas in Sydney, operators continue to strive for stronger rate growth in a competitive environment, according to investment services company Jones Lang LaSalle Hotels.

“Despite the strong RevPAR growth in all major markets, Australian hotels are considered cheap in comparison to other major international cities,” said Jones Lang LaSalle Hotels Senior Vice President Max Cooper.

“All major markets across the country are trading well and achieved RevPAR growth above 5% with five markets achieving growth in excess of 11%. Perth, Adelaide, Brisbane and Melbourne were the top performers whereas Cairns, Sydney and Darwin sat at the bottom of the table.”

An exceptionally strong final quarter, where occupancy reached 87.1% and room rates increased by 17.0%, saw RevPAR surge 26.9% to $110 and cement Perth as Australia’s best performing hotel market during 2006. ”A reduction in hotel room supply, coupled with steady demand growth, supported operator confidence to raise room rates,” said Cooper.

Adelaide was the second best performing market in the country with its RevPAR growth of 16.5% during 2006. Cooper said Adelaide had also “ridden the resources boom.”

“However the market has also benefited from a new airport and multi-billion dollar investments in the defence industry.”