National hotel performance continues to improve
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National hotel performance continues to improve
CBRE's latest research report, the Australia Hotel Marketview Q3 2017 reveals that Canberra is the star performer, posting double digit RevPAR increases and continuing its strong performance from earlier in the year.
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IHGThe new Crowne Plaza Hotel Sydney -
SuppliedShangri La hotel Melbourne -
SuppliedNational hotel performance continues to improve
The Australian hotel market showed increases in occupancy rates, ADR and RevPAR in the year to September 2017 according to the latest figures released by STR. Occupancy levels rose 0.5% compared to September 2016, reaching 75.8%, whilst ADR increased 1.5% to $186. This growth translated into RevPAR increasing 2% to $141, showing that the hotel market continues to perform strongly.
Looking more closely at individual cities, Canberra is the star performer, posting double digit RevPAR increases and continuing its strong performance from earlier in the year.
Cairns continues to be the strongest performing leisure market despite decreases in domestic visitation which has slowed occupancy growth.
There is also some positive news for Brisbane and Darwin as after a tough couple of years, both markets are seeing small signs of recovery in occupancy and in the case of Darwin RevPAR growth.
Melbourne maintains its flat performance with minimal increases in room rates and slight decreases in occupancy, as opposed to Sydney which continues to post strong growth across the board.
The Gold Coast continues to see occupancy decline but maintain rate growth, which is a similar story to its leisure counterpart Hobart.
Adelaide has continued on from its strong performance in the first half of the year, posting increases across all major performance measures.
The year continues to be quiet in terms of overall transaction volume with ~ $700m worth of acquisitions taking place; the lowest level since 2010 and a far cry from the previous five years. With no deals of any significance occurring in Q3 it has been the quietest quarter this decade.
Click here to view the full Australia Hotel Marketview Q3 2017.
To discuss the Australian hotel market contact Ben Martin-Henry or Wayne Bunz via the contact details below.
See also:
Get to know Wayne Bunz, National Director of CBRE
Tourism Australia release their Regional Investment Report
