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News release

Sydney

Australia’s key hotel markets gather momentum as 2013 wraps up

Australia’s key hotel markets are ending 2013 on a strong note according to the latest STR trading data with RevPAR growth gathering pace in several key markets. 


Sydney, 28 November 2013 - Australia's key hotel markets are ending 2013 on a strong note according to the latest STR trading data with RevPAR growth gathering pace in several key markets. 

Troy Craig, Managing Director - Strategic Advisory, Hotels & Hospitality Group said "The month of October saw excellent RevPAR gains in Adelaide, Cairns, Darwin, Gold Coast, Melbourne and Sydney relative to the same month last year.  Strong RevPAR growth was achieved in Cairns (14.9%), Sydney (13.9%), Gold Coast (11.5%) and Melbourne (8.0%)." 

Mr Craig added "These gains were underpinned by very high occupancy levels in October, ranging from 77.7% on the Gold Coast up to 90.8% in Sydney. The most improved markets by occupancy were Cairns (12% higher), Adelaide (10.8%), Gold Coast (7.5%) and Darwin (6.6%). Of the major capital cities, ADR growth was strongest in Sydney and Melbourne with gains of 8.3% and 3.6% respectively."

The Brisbane and Perth markets stabilised over October with the results showing recent RevPAR declines moderating to 2.8% and 4.4% respectively. In another encouraging sign, occupancies improved in both markets to 80.6% in Brisbane and 89.3% in Perth. 

The year-to-date October results showed RevPAR growth increasing in Cairns, Gold Coast, Melbourne and Sydney. The strongest markets by RevPAR growth over the YTD October period were the cities of Hobart (8.8%), Melbourne (8.5%), Darwin (6.7%) and Sydney (6.1%). 

Year-to-date October occupancy levels remain high in all capital cities, ranging from 76.3% in Canberra up to 83.3% in Perth, 83.8% in Melbourne and 85.8% in Sydney. Over the same period, ADR growth was strongest in Darwin (6.6%), Hobart (5.4%), Sydney (4.5%) and Melbourne (3.8%).

Mr Craig said "The outlook for further RevPAR growth in 2014 is moderate to strong in most markets. Our latest Asia Pacific Hotel Investor Sentiment Survey included the key Australian cities of Sydney, Melbourne, Brisbane and Perth. Short and medium term trading outlooks are strongly positive in both Sydney and Melbourne while both outlooks for Brisbane and Perth are also in positive territory."

"The strong end to 2013, and the positive outlook for 2014, reflects the subdued new supply levels that characterises Australia's hotel markets. These attributes form the basis of investor confidence in the sector, which is borne out by the fact that 2013 is likely to be a record year of investment at around $1.9 billion." Mr Craig concluded.