Australia’s record 4.2 million international visitors during the first half of 2017 has helped the nation’s hotels perform better than any January-June performance period ever.
The 7.2% increase in visitors compared with Hl 2016, according to the
Australia Bureau of Statistics, has translated into solid performance numbers according to STR.
For H1 2017, Australian hotels recorded an occupancy of 74.5% (up 0.5%), Average Daily Rate was up 1.5% to $184.97 and RevPAR was up 2.0% to AUD$147.81.
“While these figures indicate steady growth, it is important to note that these increases occurred at the same time as a 1.7% growth in supply,” STR said.
According to STR, in H1 hotel demand was mainly driven by transient business (+3.7%), while group demand was up 2.5% following a decline in Hl 2016.
Tourism Research Australia expects a decline in outbound travel due to the devaluation of the Australian Dollar, which should help hotel demand levels continue to rise as domestic travel becomes more common, STR said.
When it comes to the pipeline, there are approximately 30,000 rooms set to enter the market over the next five years. Of those, 9,200 are currently in construction.
Breaking down the total pipeline, 38% of rooms currently in development fall in the Luxury class while 25% are in the Upper Upscale class.