Occupancy increased significantly in Darwin, improving by 4.2 percentage points to 76.0% in the 12 month period to June 2008.
New hotels being built in Darwin anticipated for late 2008 and early 2009 will enter a strong performing local market with rising occupancy and solid RevPAR growth in the city.
Perth experienced the strongest room rate growth out of the ten major markets in Australia, rising by 16.2% to $145.92 in the 12 month period to June 2008.
Colliers International National Director for Hotels & Leisure Michael Thomson says "the Perth hotel market continues unabated with significant RevPAR growth of 19.7% in the latest 12 month period to June 2008."
On the other hand when observing occupancy levels, the major hotel markets in the Queensland (namely Brisbane, Cairns and the Gold Coast) have seen declines in occupancy as evident in the latest June quarter results.
Most notably occupancy in Cairns was down by 5.1 percentage points to 64.1% in the 12 month period to June 2008. This impacted the local market with a dip in hotelier's RevPAR in the June quarter.
In Brisbane, average room rates and RevPAR improved even while the city experienced the highest supply growth in Australia, increasing by 8.5% in the 12 month period to June 2008. This supply growth partly attributed to a 2.0 percentage point decline in occupancy to 80.0% in the same period.
Demand
Demand growth (as measured by Room Nights Sold) was strongest in Perth with a 6.9% increase in the 12 month period to June 2008.
The Brisbane market also experienced notable demand growth, up 5.9% in the same period.
Demand has decreased in Cairns and Canberra, down by 5.1% and 2.5% respectively in the 12 month period to June 2008.
Supply
The Brisbane market experienced the highest supply growth, increasing by 8.5% in the 12 month period to June 2008.
The Perth market also experienced increased supply, up by 3.7% in the same period.
Average Room Rates
Room rate growth was evident in all major city markets in the 12 month period to June 2008.
Perth experienced the strongest room rate growth, rising by 16.2% to $145.92 in the 12 month period to June 2008.
Accommodation providers in Canberra also experienced significant room rate growth, rising by 12.8% to $141.08 in the 12 month period to June 2008.
The Sydney hotel market achieves the highest average room rates in Australia, and in the 12 month period to June 2008, increased by 5.2% to $184.57. "The Sydney market continues to perform with high occupancy levels and improvement in RevPAR" – Michael Thomson
"In Melbourne market conditions are strong, reflected in notable room rate growth – rising by 8.7% to $169.01 in the 12 month period to June 2008." – Michael Thomson
Occupancy
Occupancy increased most significantly in Darwin, improving by 4.2 percentage points to 76.0% in the 12 month period to June 2008. "Several hotel developments are now underway in Darwin and indications are that the local market will be well geared to absorb the upcoming supply" – Michael Thomson.
The Hobart accommodation market also experienced notable occupancy growth, rising by 3.0 percentage points to 73.4% in the 12 month period to June 2008.
Conversely, in the same period, occupancy declined in Brisbane, down 2.0 percentage points to 80.0%, in Cairns down by 5.1 percentage points to 64.1%, and on the Gold Coast, down by 0.9 percentage points to 69.8%.
The Canberra hotel market also saw a decline in occupancy, down by 1.9 percentage points to 71.5% in the 12 month period to June 2008.
The Australian cities with the highest hotel occupancies in the 12 month period to June 2008 were Perth at 83.7%, followed by Sydney at 82.0% and Melbourne at 81.4%.
RevPAR
RevPAR (Revenue per Available Room) as a performance indicator, increased in all of Australia's major hotel markets with the exception of Cairns. In Cairns RevPAR declined by 5.4% to $77.87 in the 12 month period to June 2008.
RevPAR growth was strongest in the Perth market, increasing by 19.7% to $122.07 in the 12 month period to June 2008.
Further, "accommodation providers in Darwin experienced strong RevPAR growth of 13.8% to $99.63 in the 12 month period to June 2008" – Michael Thomson.
