A report from Deloitte Access Economics has reaffirmed both domestic and international interest in Australian hotel markets with hotel occupancy rates reaching all-time records.
The
Q1 2013 Tourism and Hotel Market Outlook
notes that occupancy rates and forecast revenue per available room rates (RevPar) will continue to climb despite a stronger supply pipeline, and predicted growth of 4.8% per year for the next three years.
The report's author Lachlan Smirl estimated that approximately 60 new hotel projects are in various stages of development across the country.
“Average occupancy rates have remained at or above 80 percent in Perth, Sydney, Melbourne and Brisbane, indicating little excess capacity in these markets, especially Perth where average occupancies are above 85 percent,” he says.
“Despite this, the appetite for new hotel developments has, for some time now, been weak. While there are a myriad of commercial factors at play, in many instances the business case simply hasn’t been there to support investment in hotels.
(Image: Grand Chifley Mosaic hotel, Fortitude Valley)
