Occupancy to rise despite new hotel projects

Occupancy to rise despite new hotel projects
By admin


A growing appetite to develop hotels in Australia will do nothing to dampen occupancy rates over the next three years, with rates and revenues also set to rise.

A market outlook report by consultancy firm Deloitte Access Economics found 66 hotel projects are underway across the country as developers begin to see value in the sector.

But many are long term projects meaning hotels will continue to benefit as demand outstrips supply, particularly in state capital cities.

National occupancy rates hit 66% for the year ending December, a figure Deloitte expects to rise to more than 68% by the end of 2015.

Room rates are projected to rise 3.7% each year, reaching $167 by December 2015 while average revenue per room, (revPAR), will rise from $99 to $114.

"While the capital city hotel investment pipeline is showing signs of improvement, many of the larger developments recently announced are not expected to be completed until 2015 or later so will have a limited impact on supply over the next three years," Deloitte said in its quarterly report. "Growth in demand is expected to continue to exceed supply."

Despite an easing of occupancy in Sydney over the last year as a result of a 15% decline in business traffic, it will creep up to almost 87% within three years, according to the analysis.

Rates will rise to $218 and revPAR to $190, up from $165 recorded in December.

Melbourne hotels will be almost 84% full by the end of 2015, up from the current 81%, Brisbane occupancies will hover around 80% and Adelaide around 75%.

Turning to WA, the report said Perth will "continue to lead the nation" in terms of occupancy despite the capacity squeeze easing slightly in the second half of last year.

"While the peak mining boom is predicted to have passed by the end of 2013 with demand for travel to WA expected to soften accordingly, occupancy rates in Perth are forecast to gradually increase over the forecast period to 86.3% by the year ending December 2015," the Deloitte study said.

In Darwin, occupancy has "risen dramatically" over the past year, climbing from 71% to 77% in 2012, but that rate of growth will slow as new capacity enters the market and will level off at 76.3% by the end of 2015.

"However, if key developments are delayed there is potential for occupancy rates in Darwin to grow further," the report said.

Elsewhere, Gold Coast occupancies, while still below levels prior to the Global Financial Crisis, will continue to slowly improve, particularly given that few new properties are expected to be built.

The increasing number of direct flights into Cairns from China, and a resurgent Japanese market should help Tropical North Queensland claw back lost ground.

Deloitte predicted occupancy will hit 64.4% in 2015, a solid improvement on the 54.6% recorded in the year ending December 2010.

Latest News

  • Aviation
  • Breaking News

Heavy turbulence kills one with dozens injured on Singapore Airlines flight

A British grandfather is dead and dozens are now in hospitals in Bangkok, including eight Australians, after a flight from the UK to Singapore hit severe turbulence, plunging 1,800 metres (6,000 feet) in a few minutes. Passengers onboard the Singapore Airlines plane told of the “dramatic drop”, which launched those not wearing a seatbelt into […]

  • Tourism

Tour Guides Australia backs Queensland Government Department of Tourism’s $2 million business capability subsidy

Tour Guides Australia has offered its full support for the Queensland Government Department of Tourism and Sport’s $2 million Tourism Business Capability Subsidy. The subsidy program is designed to boost the growth of Queensland’s tourism industry, offering up to $2,000 per eligible business to undertake targeted training and accreditation programs. “It is a significant opportunity […]

  • Tourism

Club Med Musandam is newest addition to the resort group and a first for the Middle East

Club Med has announced the newest addition to its Exclusive Collection portfolio with the opening of Club Med Musandam, the first Club Med resort in the Middle East. Set to be unveiled in 2028, the development of Club Med Musandam marks a significant investment milestone, surpassing the $100 million mark. A ground-breaking development as a […]

  • Luxury
  • Products

Louis Vuitton champions travel in campaign featuring Roger Federer and Rafael Nadal

Louis Vuitton has relaunched its iconic Core Values Campaign with a new chapter that sees tennis champions Roger Federer and Rafael Nadal. Shot by industry legend Annie Leibovitz, the campaign features the tennis icons summiting a mountain together in the Dolomites of Italy with the tagline ‘There are Journeys that turn into Legends’. Together, they […]

  • Aviation

Garuda and Singapore Airlines to offer reciprocal benefits to frequent flyers, plus explore revenue sharing arrangements

Garuda Indonesia and Singapore Airlines will deepen their commercial partnership and offer reciprocal benefits to their frequent flyer program members, plus explore revenue sharing arrangements for flights between Indonesia and Singapore, subject to regulatory approvals.  The frequent flyer program agreement was signed by Garuda Indonesia CEO Irfan Setiaputra and SIA CEO Goh Choon Phong in […]

  • Hotels

My Fiji announce an exclusive deal with new Crowne Plaza Fiji Nadi Bay Resort & Spa

My Fiji have announced an exclusive deal with the new Crowne Plaza Fiji Nadi Bay Resort & Spa, Fiji’s newest premium resort experience, offering exclusive packages for a limited time. Situated along the shores of Wailoaloa Beach, the resort offers 324 modern rooms, immersive amenities and world-renowned Fijian hospitality, Crowne Plaza Fiji Nadi Bay Resort […]

  • Cruise

Sydney Swans greats announced for Crown Princess cruise

Princess Cruises has partnered with the Sydney Swans to offer fans the first-ever AFL Member cruise aboard Crown Princess. This four-night voyage to Tasmania departs January 25, 2025 and guests will be able to immerse themselves in a once-in-a-lifetime Sydney Swans experience featuring special events and activities dedicated to fans. The cruise will feature Sydney […]

  • Destinations

Listening to whales, followed by Ales and Prawn Tails on the Sunshine Coast

Queensland’s Sunshine Coast is preparing to welcome more than 40,000 humpback whales that are making their way up the Australian east coast on their annual migration. The Sunshine Coast is one of Australia’s premier whale tourism destinations, built on its long-established whale watching cruises and Sunreef’s pioneering Swim with Whales experience, which celebrates its 10th […]

  • Aviation
  • Travel Agents

Webjet relaunches partnership with AirAsia with a huge Asia flights sale

Online travel agency Webjet has have relaunched their partnership with AirAsia with a huge Asia flights sale, available until 2 June. To give customers a greater breadth of choice and price point, hundreds of new flight options to Aussie favourite destinations have been added, including Bali, Kuala Lumpur and Bangkok via AirAsia, AirAsiaX, Thai AirAsia […]

  • Luxury

Why luxury clients are opting for immersive experiences over material items

The Luxury Travel Collection’s (LTC) inaugural business owners Soiree took place on Hayman Island last week. The event saw luxury leaders gathering to find out more about the key trends shaping the industry. The Immersion Day, held on Thursday 16 May 2024, followed the growing luxury client trend of valuing immersive experiences over material items. […]

  • Conferences

Empowering underserved communities: Expedia Group’s drive for more inclusive travel

Expedia Group has used the EXPLORE conference at the Aria Resort in Las Vegas to highlight initiatives that empower underserved communities worldwide.   In a groundbreaking move towards fostering diversity and inclusion within the travel industry, Expedia’s Global Social Impact and Sustainability Team is dedicated to shaping a travel landscape that is safe, welcoming, and accessible […]

  • Cruise

P&O rescues Rotary volunteers after collapse of Air Vanuatu

P&O Cruises Australia has answered a plea for help from a group of young Australian Rotary volunteers, stranded in Vanuatu following the collapse of Air Vanuatu. The students, many of them teenagers from Albury, NSW, were volunteering for a youth project run by the Hive Rotary Club Australia when the airline abruptly cancelled all flights, […]

  • Destinations

Intrepid continues expansions with launch of first DMC in Jordan

Intrepid has increased its presence in the Middle East with the opening of its first destination management company in Jordan. Based in Amman, the local team will operate Intrepid’s range of nine experiential small group tours in Jordan from this summer, with a view to expanding the range for 2025 and beyond. Zina Bencheikh, managing […]

  • Appointments

Minor hotels appoints Puneet Dhawan to key Asia role

Global hotel owner and operator Minor Hotels has appointed Puneet Dhawan as head of Asia as the group plots its growth in Asia and India. From July, Dhawan will be responsible for the performance of all Minor Hotels properties in Asia, working in close collaboration with the Minor Hotels senior leadership team and will report […]

  • Appointments

Abercrombie & Kent and Crystal appoint Evon Ler to director of sales, Asia

Abercrombie & Kent Travel Group have announced that Evon Ler will join them in the new role of director of sales, Asia. She will work closely with Tony Archbold (VP, Sales, APAC, Crystal) and Susan Haberle (VP, Sales & Partnerships, APAC, A&K) with trade support across the region. Ler comes to the A&K family with more […]