Perth leads field in tight hotel market

08/04/2009 - 22:00

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FOR the second year running Perth has claimed first place in the annual Deloitte Hotel Occupancy Global Ranking index, cementing its position as the number one performer in worldwide hotel occupancy rates.

Perth leads field in tight hotel market

FOR the second year running Perth has claimed first place in the annual Deloitte Hotel Occupancy Global Ranking index, cementing its position as the number one performer in worldwide hotel occupancy rates.

Despite a 2.4 per cent dip in the occupancy rate on a slight increase in hotel supply, Perth recorded an occupancy rate of 82.4 per cent for 2008. New York was second with 81.9 per cent, and Abu Dhabi third with 81.6 per cent.

Australian cities dominated the top 12 positions, with Brisbane ranked seventh, Sydney eighth, Melbourne ninth and Adelaide 12th.

Deloitte hospitality partner Michael Kaplan said the results were great news for Australian hoteliers in what was a very difficult market.

"While occupancy rates fell across many cities around the world, including Australia, our cities once again proved to be performing solidly, especially in the current economic environment," Mr Kaplan said.

Last year was the second year in a row that Perth's hotel market was judged the world's tightest.

Record high occupancy rates during 2007 elevated Perth to top ranking on Deloitte's 2007 global occupancy ranking index for the first time with 85.1 per cent occupancy. That represented a 10 per cent increase in occupancy since 2000.

Revenue per available room (RevPAR) for Perth hotels rose 13.7 per cent to $US128 in 2008, but still remains below the average room rate nationally at $US146, up 5.6 per cent on last year.

But while Perth has enjoyed strong occupancies in recent years on the back of limited new supply, 2009 is expected to be a challenging year as the tourism industry and business travellers feel the impact of the global economic slowdown.

The report says the strategy for the tourism industry this year is to focus on survival and for hotels to provide value for money.

It urged hotel owners to resist the temptation to slash room rates to bring in business in the short term, recommending smarter marketing and value-add deals to maintain visitor numbers.

Currently, the only major new hotel development under construction in the Perth CBD is the 184-unit Frasers Suites, part of the Queens Riverside development in East Perth.

Three other hotel developments slated for the city - a 121-room hotel on Parker Street Northbridge, the Elan Riverside Pier Hotel and the $30 million expansion of the Seasons of Perth hotel on Pier Street - have all been put on hold.

Last month, the state government named Mirvac/Cbus Property as the preferred proponent for the redevelopment of Perth's Old Treasury Building, which will include a five-star hotel.

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