Brisbane and Perth 'absorbing' increase in hotel supply: CBRE report
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Brisbane and Perth 'absorbing' increase in hotel supply: CBRE report
CBRE has released its Australian Hotel MarketView for the fourth quarter of 2019, revealing positive signs for the Brisbane and Perth markets.
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AccorA new Novotel on Murray Street entered the Perth market towards the end of last year.
Brisbane and Perth are the only Australian hotel markets to have benefitted from a growth in supply towards the end of last year, according to a new report.
Key Points
- Annual RevPAR declined 1.9% to $137 for the year ending December 2019
- National occupancy declined 0.9% to 73.9%
- ADR declined 1.0% to $186 for the year ending December 2019
- Hobart, Brisbane and Adelaide all registered positive annual RevPAR growth for the year ending December 2019
- International visitor arrivals reached a record high of 8.7m for the year ending September 2019, an increase of 2.5% on 2018
- Spending by domestic visitors in the year to September 2019 was $79.1bn, up 13.3% on 2018, whilst overnight spend by international visitors was $31.3bn, up 5.0% on 2018
- Hotel sales volume for 2019 was ~$1.8bn
CBRE has released its Hotel MarketView for Q4 2019, indicating national annual revenue per available room declined 1.9 per cent to $137 for the year ending December 2019, while occupancy declined 0.9 per cent to 73.9 per cent.
This is despite international visitor arrivals reaching a record high of 8.7 million for the year ending September 2019, an increase of 2.5 per cent on 2018, and spending by domestic visitors in the year to September 2019 being $79.1 billion, up 13.3 per cent on 2018.
But the report also notes there were markets able to buck the trend, with Hobart and Adelaide benefitting from a combination of "strong demand drivers" and limited supply to register positive annual RevPAR growth for the year, while Brisbane and Perth are "slowly absorbing" recent stock additions as room demand growth begins to exceed room supply growth.
According to the report, hoteliers in Brisbane will continue to benefit from a limited pipeline in the short term.
There is also a positive outlook for Perth, with the entry of new high-end product to create an element of supply-led demand.
Click here to download a copy of CBRE report.
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