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News release


Increasing room rates drive a positive viewpoint for Australian hotels

Sydney, 27 May 2013 – Australia’s capital city hotel markets continue to achieve robust Average Daily Rates (ADR), underpinning both Revenue Per Available Room (RevPAR) and income upturn. Continuing on the solid growth performance seen in both 2011 and 2012, Australia’s major CBD hotel markets have traded strongly during the first four months of 2013 according to Jones Lang LaSalle’s Hotels & Hospitality Group’s review of the latest April STR Data.

Craig Collins, Chief Executive Officer – Australasia, Hotels & Hospitality Group said, “Australia’s markets are maintaining sound year-to-date (YTD) April occupancy levels with Melbourne (83.9%), Darwin (73.7%), Gold Coast (69.4%) Canberra (74.7%) and Sydney (86.4%) all experiencing increases in their occupancy levels.” He added, “Hobart has led the way in occupancy so far this year with a rate of 87.1%. Such trading conditions have been catalyst for hotel operators being able to drive Average Daily Rates (ADR) upward, and Hobart is no exception, with ADR increasing by a very strong 9.2% over the first four months of 2013.”

The majority of our key markets posted RevPAR gains so far this year with Darwin (13.2%), Hobart (8%) and Melbourne (7.8%) leading the way. Mr Collins said, “It is clear that most Australian markets are still performing exceptionally well, despite expectations of a softer April due to an early Easter break.”

Darwin has performed strongly; Tourism NT reported an increase in domestic tourism earlier this year and coupled with the territory’s resource projects, continue to support the Darwin accommodation market.  Mr Collins said, “Darwin achieved the strongest RevPAR growth for YTD April and recorded an impressive ADR increase of 8.7% to reach AUD143.” He added, “The Melbourne accommodation market also benefitted from the rise of inbound arrivals, and that combined with a modest recovery in the corporate market, resulted in the city seeing not only the second highest occupancy rate, but also one of the top RevPAR and ADR increases.” Mr Collins added, “Notably, Sydney continues to be Australia’s consistent performer, appearing in the top five across all STR fields.”

Perth continues to have the highest room rates in the country at AUD223, while Sydney was a close second at AUD219. 

“The encouraging results documented in the latest STR data release confirm a positive outlook for Australia’s key accommodation markets. Investors appear to remain focussed on Australian hotels and it is anticipated that the strong hotel transaction volume activity witnessed thus far, will continue into the balance of the year.” concluded Mr Collins. ​