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News release


Positive outlook for Canberra hoteliers

After a number of difficult years of hotel trading, Australia’s capital city has shown continued improvement in hotel trading.

After a number of difficult years of hotel trading, Australia's capital city has shown continued improvement in hotel trading. Building on a 6.6% increase in RevPAR for the 12 months to December 2015, JLL's review of the latest STR data reveals that at YTD February 2016, RevPAR has increased by an impressive 10.0% to $115.

Furthermore, occupancy rates have increased by an encouraging 5.4% to 71.3%, with the average daily rate (ADR) reaching $161, an increase of 4.4% over the same period.

JLL's Hotels & Hospitality Group, Vice President - Investment Sales, Andrew Langsford said "There is a strong consensus that the hotel market is through the worst of a cyclical downturn and the outlook is very positive."

"These results are particularly robust considering the Canberra market's recent absorption of a number of substantial new hotel developments, including the Vibe Hotel Canberra Airport (191 rooms), Little National Hotel (120 rooms) and Hotel Kurrajong Canberra (147 rooms)."

Domestic overnight visitors have also notably increased over the last year to December 2015, as detailed in Tourism Research Australia's recent report. Residing in commercial accommodation throughout their stay, overnight visitors to the Australian Capital Territory have increased by 21.7% to approximately 2.68 million. Subsequently, regional trip expenditure is also up 51% to $836 million.

Moreover, there has been a significant increase in the number of domestic overnight visitors to Canberra specifically for business purposes, up nearly 45% on 2014.

"Whilst a portion of this increased domestic visitation may be linked to an upcoming Federal election, we do not expect this to change substantially once an election is called." commented Mr Langsford.

International visitor nights have similarly shown considerable growth, up 12.2% to 5.1 million, as at year end December 2015, improving trip expenditure by 7.1%, over the same period. Canberra hoteliers expect to see a rise in international tourism following the announcement of direct international flights from Singapore, opening the doors to Asia from September this year.

"The high demand for hotel accommodation in Canberra from visiting government, industry and media representatives combined with significant infrastructure investment underpins excellent hotel investment fundamentals for Canberra. This recent data shows that the market is really starting to build momentum and investor demand is strong" concluded Mr Langsford.