Activation of Canberra CBD to drive visitation going forward - CBRE report
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Activation of Canberra CBD to drive visitation going forward - CBRE report
Canberra's development of a light rail and new mixed-use precincts is expected to drive visitation to the nation's capital going forward following a disrupted 2019 for city's hotel market, CBRE says.
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DepositphotosAn aerial view of the Canberra CBD.
Business travel remains a key sector for Canberra's hotel market, making up nearly 50 per cent of nights spent in hotels throughout 2019, data from CBRE has revealed.
Figures from CBRE's Hotel Maketview for the fourth quarter of 2019 showed there were 3.7 million nights spent in hotels in the city last year, signalling a 23.5 per cent annual increase.
Source: CBRE
Of the hotel nights occupied by travellers, 45 per cent were for business trips, 35 per cent were holidaying, and 13 per cent VFR.
Despite the annual increase in nights spent in hotels, the report indicates there were decreases in both average daily rate and hotel occupancy towards the end of 2019, resulting in a revenue per available room decline of 5.6 per cent.
Source: CBRE
Links to the above hotels:
New Mercure for Canberra is already taking bookings
TFE Hotels to Open First Adina Apartment Hotel Grand in Canberra
According to CBRE, the trend could be attributed to softer leisure travel from domestic source markets coupled with the impact of the 2019 federal election.
The Mercure Belconnen. Source: Accor
The city is set to add a further 480 rooms by end of 2021 based on the projects currently under construction, which the agency estimates will increase supply by 7 per cent.
The report also notes that the introduction of a new light rail, as well as the development of new mixed-use precincts would help drive more people to visit the city.
Adina Apartment Hotel Grand, Canberra. Source: TFE
"Additional projects have also reached the approval stage and should these projects proceed, further supply increases are possible," CBRE said.
"The development of high-end product will help stimulate demand across the market."
Click here to download a copy of the report.
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