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News release

Sydney

January trading strong; Australia’s accommodation markets buoyant

Continued strong performance across many of Australia’s major accommodation markets


JLL's review of the latest STR Global data indicates continued strong performance across many of Australia's major accommodation markets.

January trading saw RevPAR (revenue per available room) gains in the Great Barrier Reef (26.4%), the Sydney Airport Precinct (18.1%), Cairns (14.2%), the Gold Coast (11.4%), Melbourne (8.5%), Melbourne five-star (6.5%), Hobart (6.2%), Sydney five-star (6.0%) and Sydney (5.1%).

Troy Craig, Managing Director – Strategic Advisory, Hotels & Hospitality Group, said "The Tropical North Queensland markets of Cairns and the Great Barrier Reef continue to benefit from large numbers of Chinese visitors and an increased air capacity overall. The additional of seasonal flight services by Hong Kong Airlines1 over the first quarter of the year and Sir David Attenborough's recent documentary2 featuring the world's largest coral reef system will be a further boost the markets' trading performance."

"In January 2016, the Great Barrier Reef recorded an occupancy rate increase of 8.9% on the previous year to 88.4%, the second highest nationally. While Cairns recorded an occupancy increase of 6.6%, relative to January 2015, up to 76.9%, over the same period. Unsurprisingly, the Great Barrier Reef logged the highest ADR (average daily rate) in the country at $488, an increase of 16.1% over the previous year. Cairns also recorded a rise in ADR of 7.1%, reaching $133 over the same period."

"At the southern end of the 'Sunshine State', the Gold Coast accommodation market achieved increases in occupancy and ADR, recording 83.3% (up 2.7%) and $228 (up 8.5%). This family friendly leisure destination has also benefited greatly from increased inbound Chinese tourism and air capacity, and is expected to continue due to improved airlift including Hong Kong Airlines3 seasonal flight services – with an anticipated 10,000 increase in visitors over the Q1 2016."

"With preparations for the 2018 Commonwealth Games4 well underway, new infrastructure, incentives and experiences are creating fresh opportunities for the business events market. The outlook for the Gold Coast market remains positive." Mr Craig continued.

"The Melbourne accommodation markets, with a rich repertoire of sporting and cultural events, continues to draw significant inbound visitors. Notably, the 2016 Australian Open5 reported a total attendance of over 640,000 fans, approximately 29% of which interstate and 11% international visitors6."

"Occupancy rates increased across both Melbourne and Melbourne five-star markets, recording increases of 3.4% to 84.6% and 1.9% to 87.9%, respectively in January 2016. Melbourne five-star logged the second highest ADR rate in the country at $300, up 4.5%, while Melbourne recorded an ADR increase of 4.9% to $219, over the same period."

"Sydney and its sub-markets have maintained a solid performance during the first month of the year. This is despite a decrease in business room nights due to the holiday season. Occupancy and ADR have both remained buoyant."

"Sydney five-star hotels recorded an ADR increase of 5.3% to $290 over in January 2016. The Sydney and Sydney Airport Precinct recorded ADR increases of 4.3% ($237) and 4.5% ($145), respectively over the same period. All three markets logged growth in occupancy, the most notable being the Sydney Airport Precinct, up 13% to 86.1%, followed by Sydney up 0.8% to 84.5% and Sydney five-star up 0.6% to 84.6%)." Concluded Mr Craig.

​Sources:

  1. Cairns Airport – Hong Kong Airline Confirms Service
  2. Tourism Australia – Great Barrier Reef to star in global TV series
  3. Gold Coast Airport – Hong Kong Services Commence at Gold Coast Airport
  4. Gold Coast Business Events – Gold Coast 2018 Commonwealth Games injecting renewed energy and experiences for meetings and incentives
  5. VTIC – Australian Open shines a global spotlight on Melbourne
  6. Herald Sun - Tennis fans urged to buy Australian Open tickets before the first serve