Hotel sector softens in Brisbane, Perth

Hotel sector softens in Brisbane, Perth
By admin


Hotel occupancy in Brisbane and Perth has softened as the resources boom has slowed but strong international arrivals has provided a boost for Tropical North Queensland, a new report has found.

The Gold Coast has also benefitted from a growth in domestic travel although a generally softer economic outlook was moderating forecasts for hotels in capital cities.

The Deloitte Tourism and Hotel Market Outlook showed forecasts are “subdued” for markets close to mining centres but the picture was more promising for areas more reliant on international visitors.

“While the overall national picture is a relatively stable one there is a significant difference in performance across the country’s hotel accommodation markets,” Deloitte tourism, hospitality and leisure leader Lachlan Smirl said. “Growth in occupancies and room rates in markets associated with mining-related corporate travel, such as Brisbane and Perth, is forecast to be more subdued than in recent years, as the resource-related construction boom reaches its peak.

“At the same time the weakening of the Australian dollar is forecast to provide further support for room rates and occupancies in leisure-orientated markets.”

Brisbane saw occupancy fall from 81% to 79% in the year to May. In Perth, occupancy fell to 83.3% in the year to March, the lowest level since the year to June 2011.

Sydney occupancy climbed marginally to 84.8%, with Melbourne rising to 81.9%.

In Tropical North Queensland, occupancy has “improved steadily”, reaching 61.2% in the year to March before falling to 60.9% in the 12 months to May.

On the Gold Coast, occupancy climbed to 71% and is forecast to continue rising in the second half of 2013.

Smirl said demand continues to grow at close to twice the rate of supply. But projects in the “investment pipeline” have increased over the past 18 month, he added.

“Indeed, 65 projects have been identified in various development stages of the national supply pipeline, a significant expansion on the 45 developments recorded at the beginning of the year,” Smirl said. “Much of this forecast development is three and four star hotel and serviced apartments with the cost of five star hotel developments remaining more difficult to justify for developers.”

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