14/07/2009 - 15:44

Revenue jumps for Perth hotels

14/07/2009 - 15:44

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Perth hotels have recorded the largest increase in revenue for an available room over the past 12 months, with a jump of 19 per cent to just over $135, latest figures show.

Perth hotels have recorded the largest increase in revenue for an available room over the past 12 months, with a jump of 19 per cent to just over $135, latest figures show.

 

The announcement is below:


 

In the latest release from the ABS for the March quarter 2009, the Australian accommodation sector continued to perform steadily, even though hotel occupancy levels eased.
- The top performing markets were Perth and Canberra exhibiting strong room rate and RevPAR growth.
- Most cities in Australia saw moderate room rate growth in the 12 month period to March 2009.
- The Sydney hotel market was comparatively weak with lower room rates and declining occupancy.
- The Melbourne market has remained resilient with slight improvement in average room rates in a period of weakening demand.

Occupancy:
The majority of hotel markets across Australia experienced lower occupancy:
- In Sydney, occupancy decreased by 1.9 percentage points to 79.6% in the 12 month period to March 2009.
- In Melbourne, occupancy decreased by 1.5 percentage points to 79.4% in the same period.
- In Brisbane, occupancy decreased by 3.1 percentage points to 76.6% in the 12 month period to March 2009.
- On the Gold Coast, hotel occupancy decreased by 3.8 percentage points to 66.6% in the same period.

"In the first quarter of 2009, the deterioration in the global economy translated into cutbacks and fewer bookings in the corporate and leisure markets, and this was felt across most accommodation markets," says Michael Thomson, National Director Hotels & Leisure at Colliers International

However some cities maintained occupancy growth:
- In Perth, occupancy increased by 0.4 percentage points to 82.6% in the 12 month period to March 2009.
- In Hobart, occupancy increased by 0.5 percentage points to 73.4% in the 12 month period to March 2009.

Supply:
Most hotel markets in Australia saw limited new hotel room supply. The exceptions were:
- The Darwin market expanded in terms of new hotel room supply, growing by 13.6% in the 12 month period to March 2009.
- Brisbane also saw new hotel room supply enter the market. Supply increased by 7.2% in the 12 month period to March 2009.
"Limited supply in most of Australia's hotel markets should provide the opportunity for a rapid recovery once the market improves," says Mr Thomson.

Demand:
(Demand is measured by the decline or rise in the number of Room Nights Sold).
- In Sydney, demand levels decreased by 1.8% in the 12 month period to March 2009, demonstrating its exposure to the decline in international visitors and the downturn in the finance market.
- In Melbourne, demand was down marginally by 0.6% in the 12 month period to March 2009.
- The Gold Coast saw demand for accommodation decline by 3.9% in the 12 month period to March 2009 due to its vulnerability to the downturn in tourism.

However some markets saw demand levels improve in the first quarter of 2009:
- In Brisbane, demand for accommodation increased by 3.0% in the 12 month period to March 2009.
- Perth saw continued growth in demand for accommodation, up by 4.1% in the 12 month period to March 2009, demonstrating the resilience of the resources sector to date.
Mr Thomson observed "Darwin saw the most marked increase in demand, up by 9.1% in the 12 month period to March 2009, partly due to the new convention facilities and continued demand from the resource and infrastructure sectors."

Average room rates:
Slipped in Sydney:
- In Sydney, the average room rate decreased by 0.9% to $180.75 in the 12 month period to March 2009.
"Hoteliers in Sydney have been discounting nightly rates with the aim of chasing more volume business" says Mr Thomson.

Improved strongly in:
- Perth, the average room rate increased significantly by 18.2% to $163.87 in the 12 month period to March 2009.
- Canberra, the average room rate increased by 11.7% to $150.10 in the same period.

Most other cities saw moderate room rate growth:
- In Melbourne, the average room rate increased by 3.1% to $170.33 in the 12 month period to March 2009.
- In Brisbane, the average room rate increased by 4.9% to $147.76 in the same period.
- In Darwin, the average room rate increased by 9.4% to $139.62 in the 12 month period to March 2009.
- In Adelaide, the average room rate increased by 5.9% to $142.97 in the 12 month period to March 2009.

RevPAR:
(A measure of hotel performance - Revenue Per Available Room)
Top performers:
- In Perth, RevPAR was up by 18.7% to $135.39 in the 12 month period to March 2009.
- In Canberra, RevPAR was up by 10.8% to $105.33 in the same period.

Steady performers:
- In Melbourne, RevPAR was up by 1.2% to $135.19 in the 12 month period to March 2009.
- In Brisbane, RevPAR was up by 0.8% to $113.26 in the same period.
- In Darwin, RevPAR was up by 5.0% to $100.57 in the 12 month period to March 2009.
- In Hobart, RevPAR was up by 2.5% to $93.97 in the same period.

RevPAR falls:
- RevPAR decreased in the Sydney hotel market, falling by 3.2% to $143.83 in the 12 month period to March 2009.
- RevPAR also decreased in the Gold Coast hotel market, down by 5.3% to $89.33 in the same period.

"The market consensus is for sustained challenging market conditions this year with the opportunity for a modest recovery at the end of 2010 and into 2011" says Hotels & Leisure National Director, Mr Thomson.

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