Hobart hotel market 'stand out' performer in 2019 : CBRE Hotels report
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Hobart hotel market 'stand out' performer in 2019 : CBRE Hotels report
A strong domestic visitor market led Hobart to record positive revenue per available room growth last year CBRE Hotel report.
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DepositphotosA panoramic view of Hobart's waterfront at sunrise.
Hobart's hotel market was one the top performers for revenue per available room growth among the capital cities last year, data from CBRE has shown.
CBRE's Hotel Maketview for the fourth quarter of 2019 indicated the city's RevPAR increased by 7.9 per cent throughout 2019, joining Brisbane and Adelaide as the only capital cities to buck the national trend of decline.
At a glance:
- 6.8% decrease in nights spend in hotels to 2.2 million annually
- Of the hotel nights occupied by travellers, 69% were for holidaying, 22% for business trips and 6% VFR
- China, the US and Hong Kong are the dominant overseas sources accounting for 46% of hotel nights
- International guests accounted for 18% of total hotel nights
- NSW, VIC and TAS are the dominant domestic sources accounting for 70% of hotel nights
- Average length of hotel stay was 2.7 nights
According to the report, Hobart continues to benefit from a strong domestic visitor market, which accounted for 82 per cent of hotel nights for the year ending September 2019.
Source: CBRE
NSW, Victoria, and Tasmania are leading domestic sources, accounting for 70 per cent of hotel night, while of the nights occupied, 69 per cent were for holidaying, 22 per cent were for business trips, and 6 per cent VFR.
Going forward, the report notes that about 700 rooms are currently under construction in the city, representing about 20 per cent of the existing supply.
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CBRE believes this will likely place downward pressure on occupancy and resultant hotel performance as this stock enters the market.
The company also states the city's proximity to "key tourist attactions" will underpin room growth going forward.
Click here to download the report.
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