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News release


Positive outlook on the back of steady performance

Perth hotel market trading well, absorbing recent supply

​The Perth hotel market finished 2015 on a positive note with full year STR data showing steady occupancies and average daily rates (ADR).

Despite earlier concerns regarding the impact of the downturn in resources industry on Perth's hotel market, the West Australian capital has weathered well, finishing 2015 with its ADR remaining one of the strongest in the country at $204.

Andrew Langsford, Vice President – Investment Sales, JLL Hotels & Hospitality Group, said "Hotels have traded well against the current economic backdrop, with occupancy at 84.2% resulting in RevPAR of $172. The nation's third highest behind the east coast heavyweights Sydney and Melbourne."

Mr Langsford continued, "Over the past few years Perth has experienced a moderation across the hotel sector, however the market is proving resilient and the outlook is positive."

New supply entering the market has been quickly absorbed over the past year, with a number of new properties having opened including Hotel Alex (74 rooms) and Quest West Perth (72 rooms). The luxury COMO The Treasury also opened, adding 48 boutique guest rooms to Perth's room supply. The deluxe hotel brought with it the highly-anticipated opening of food and beverage offerings, Wildflower and Post restaurants.

"Looking forward, there is considerable new supply on the horizon with a number of new properties under development, including Crown Perth (500 rooms), The Westin Perth (368 rooms), Doubletree by Hilton Northbridge (reported 206 rooms) and the Sage Hotel West Perth (reported 94 rooms) - a possible catalyst for owners and operators to review their strategies and look to reposition existing assets." said Ross Beardsell, Senior Vice President – Asset Management, JLL Hotels & Hospitality Group.

"Major refurbishment of several four to five-star hotels is expected to take place over the year ahead. In February 2016, the Holiday Inn Perth will complete an extensive room and public area refurbishment, including the launch of Ivy & Jack restaurant on the ground floor. The former Rydges Hotel closed late 2015 to undergo extensive refurbishment and rebranding, once complete in the first quarter of 2017 the hotel will re-open as the InterContinental Perth." Mr Beardsell added.

​Year to Date - December 2015 vs December 2014 ​​ ​ ​ ​ ​ ​
Occ %ADR ($)RevPAR ($) 
2015​​% Change from YTD 20142015% Change from YTD 20142015% Change from YTD 2014
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​Source: STR Global, JLL