Investor Updates
Hotel occupancy rates rise to new levels
7 September 2012
Australian hotel occupancy rates have continued to grow with the March quarter 2012 surpassing its peak pre-GFC rate, according to new research from Deloitte Access Economics.
According to Deloitte’s Q3 2012 Tourism and Hotel Outlook report, room occupancy rates increased to 65.8 per cent over the March quarter, up from 65.3 per cent the previous quarter.
Deloitte note this is the highest rate recorded since consistent data was compiled and above the 2007 peak of 65.7 per cent.
The report also states that occupancy rates are expected to reach around 80 per cent in mainland capital cities, with the exception of Darwin, Adelaide and Canberra.
Hotel-room demand across Australia is expected to climb 2.3 per cent a year, while room nights available will rise 0.7 per cent, the Deloitte Access Economics report said.
This will raise revenue per available room by an average 5.5 per cent a year over the next three years.
Deloitte Access Economics’ Economics Director, Lachlan Smirl, said: “This positive outlook reflects both increasing demand for rooms on the back of forecast growth in the international visitor market and relatively weak investment in new capacity.”
The strong fundamentals have underpinned a record level of Australian hotel investment for the first half of 2012, as Asian companies including Shangri-La Asia Ltd, Starhill Real Estate Investment Trust and Langham Hospitality Group have been lured by rising occupancy and room rates.
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