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News release

Brisbane

Queensland hotel markets enjoy good start to 2011

STR data shows increase across all major markets despite weather events


Despite the somewhat challenging start to the year for Queensland's hotel industry, occupancy levels in Cairns (65.5%), Brisbane (69.5%) and Gold Coast (71.5%) remained relatively strong during the first two months of 2011 according to the newly released STR data. 
Cairns trading conditions have experienced extraordinary growth in February, after an extended period of decline over the past few years, recording a RevPAR increase of 10% on the same period last year. This highlights that despite ongoing challenges the market outlook is looking positive.  “The newly re-developed airport, Chinese New Year and the accommodation requirements as a consequence of Cyclone Yasi were all impacting features over this period. However above all this, the Cairns market is posed for continued trading growth through 2011,” said Mr Julian Whiston, Senior Vice President – Strategic Advisory, Jones Lang LaSalle Hotels.
Brisbane occupancy levels remain healthy at just shy of 70% year-to-date, however the impact of the January floods is not to be understated. Mr Whiston noted, “It is clear that demand for accommodation in Brisbane was disrupted with an occupancy fall of four percentage points against the same period for 2010.  Notwithstanding the softer occupancy, room rate growth continued over this period achieving an average daily rate (ADR) of $187.45 in February.” He added, “Under the circumstances this is a positive result, and while still navigating through extraordinary market circumstances, the outlook for Brisbane follows a similar upward trend.”
Continuing to show signs of stabilisation the Gold Coast market saw ADR reach $155 in February, driven by the domestic meetings and business events segment.  The recovery of the Gold Coast market will continue to be primarily driven by domestic corporate travel, as opposed to international travellers, in the short to medium term as the extent of the impact of the recent events in Japan will have on inbound tourist demand is yet to be determined.