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

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Travel Agents

Sno’n’Ski Holidays unveils 2025 mega famil to Colorado!

Sno’n’Ski Holidays will whisk 30 top-performing travel agents from Australia and New Zealand on an unforgettable journey to Colorado as part of its Mega Famil in 2025. The agents are set to visit Steamboat, Vail, Aspen Snowmass & Telluride ski resorts in Colorado, along with a city-stopover in Denver. The Sno’n’Ski Mega Famil , in […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]

  • Partner Content

My journey: Before becoming a travel agent I was… a palliative care nurse 

Australind Travel & Cruise, Travellers Choice member Saibra Twigg reveals her life as paediatric nurse then to palliative care before a career leap to travel agent. How did you become a palliative care nurse?  ST I went straight from school in nursing and initially specialised in paediatrics, working at Perth’s Princess Margaret Hospital for Children. […]

Partner Content

by Travel Weekly

Travel Weekly