28/03/2012 - 10:30

Perth hotels sector fires up

28/03/2012 - 10:30

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Perth hotels sector fires up

SCARCE supply and growing demand from the resources sector have helped push Perth’s hotels market to the top of the class, with the Western Australian capital outperforming all major Australian cities over 2011, according to new research.

Colliers International’s research report on Australian hotel investment, released this week, showed three major transactions took place in WA in 2011, while Perth lodgings also outperformed other capitals in terms of room rates, revenue per average room (RevPAR) and occupancy.

Nationally, there were 15 individual hotel sales in 2011, with three of those occurring in Perth. Melbourne was the only capital to see more individual sales, with six assets changing hands over the period.

Perth hotels recorded RevPAR of 18 per cent over the 12 months to September 2011, well above the national average growth rate of 5 per cent. RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.

Average Perth room rates grew 9 per cent over the period, compared to 4.8 per cent nationally, while occupancy for the September quarter was 83.9 per cent, well above the national average of 74 per cent.

“The Perth market is reaping the benefits of the mining boom and we expect to see it continue to outperform the rest of the country in the short term on the back of strong investment and construction activity and a healthy level of corporate travel,” Colliers’ national director – hotels and leisure, Michael Thomson, said.

Mr Thomson said offshore investors would keep a close watch on Perth hotels in 2012.

Hotels for sale include the Novotel Langley, which hit the market early last month, and Fremantle’s Esplanade Hotel, which is expected to fetch around $90 million.

Construction activity is also expected to pick up, Mr Thomson said, with hotels planned for the Perth City Link, the Perth Waterfront and the expansion of the Crown Perth Casino.

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