Australia’s Hotels fill up again

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The Australian, 10 February 2011


Hotel occupancy in Australia’s major cities is returning to the levels preceding the global financial crisis, according to the Deloitte Hotel Market Outlook report released yesterday.

Australian hotels were on track to record room occupancy levels of 65.6 per cent by the end of 2011, against 63.9 per cent for 2010 and 62 per cent for 2009.

Deloitte’s national leader for tourism, hospitality and leisure, Rutger Smits, said revenue per available room (RevPAR) — a measure of hotels profitability — was expected to increase by 9.1 per cent on average in 2011 to $97, up from $89 for 2010 and $84 as recorded for 2009.

He said Sydney, which had the strongest occupancy rate at 85.6 per cent last year, should reach about 87 per cent by the end of 2011.

The peak before the GFC was 82 per cent.

Room rates were expected to grow 11.4 per cent by December, with RevPAR expected to reach an average $171, which compares to $136 in 2009.

Melbourne and Brisbane are both expected to achieve occupancy levels towards 82 per cent supporting double-digit rate growth, resulting in a RevPAR lift of 13-15 per cent, while Perth is expected to push occupancy to 88 per cent with a 20 per cent. RevPAR uplift.

Driving strong corporate demand would be the active resources market and limited supply, but the leisure sector would remain under pressure.

Rutger Smits was the National Leader for Tourism, Hospitality and Leisure at Deloitte until October 2011. He now manages his own hotel consulting business, AHS Advisory

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