Adelaide hotel market benefitting from corporate growth: CBRE report
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Adelaide hotel market benefitting from corporate growth: CBRE report
Data from CBRE has shown that Adelaide's hotel market will welcome a range of new additions throughout the next 12 months.
Adelaide's hotel market is expected to build on a positive 2019 performance throughout the next 12 months as a slew of new supply hits market.
Data from CBRE's Hotel Maketview for the fourth quarter of 2019 revealed the city was able to record a 1.8 per cent increase in Revenue Per Available Room for last, despite a 0.1 per cent decline in Average Daily Rate.
Source: CBRE
Of the hotel nights occupied by travellers, 49 per cent were for business trips, 33 per cent were for holidaying and 11 per cent VFR.
The report also indicated hotel performance in Adelaide had recieved a boost from the city's growing events and conference, as well as a rise in corporate demand stemming from recently completed projects such as the recently completed BioMed City.
Source: CBRE
Looking ahead, CBRE forecasts continued infrastructure investment to drive future visitation in city, which has one of the strongest supply pipelines in Australia.
Adelaide is expected to add almost 600 new rooms in 2020, which is expected to place downward pressure on occupancy levels.
CBRE believes new high-end supply will help the city's market "develop new channels of demand".
Click here to download a copy of the report.
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