Only Perth and Darwin saw occupancy growth in the 12 month period to September 2008, while occupancy in Hobart remained near-steady.
Nevertheless, the latest results also show that all of Australia's 10 major hotel markets have experienced some degree of room rate growth.
The standout markets have been in Perth, Darwin and Canberra with accommodation providers experiencing double digit improvement in their average room rates.
In terms of hotel performance, Perth and Darwin again continue to lead the other major markets with strong RevPAR (Revenue Per Available Room) growth in the 12 month period to September 2008. Accommodation providers in Perth saw RevPAR increase by 19.8% rising to $127.15, while Darwin hoteliers saw RevPAR growth of 18.3%, rising to $106.06.
Occupancy:
The Darwin accommodation market experienced solid occupancy growth, improving by 4.1 percentage points to 76.3% in the 12 month period to September 2008.
While the Perth hotel market has been performing strongly, occupancy levels increased only marginally by 0.4 percentage points to 83.0% in the 12 month period to September 2008.
In Hobart, occupancy remained at 72.4% in the 12 month period to September 2008, remaining unchanged on the previous year.
The major city markets of Sydney and Melbourne both saw a 0.2 percentage point decline in occupancy to 81.4% and 80.9% respectively in the 12 month period to September 2008. ‘Occupancy rates in central Sydney and Melbourne have declined only marginally on the record highs achieved in early 2008' – Michael Thomson, Director Hotels & Leisure.
In Queensland; Brisbane, the Gold Coast and Cairns experienced negative results with occupancy levels down across the three markets.
In Brisbane, occupancy declined by 2.8 percentage points to 79.1% in the 12 month period to September 2008.
The Gold Coast accommodation market saw occupancy decrease by 2.1 percentage points to 68.6% in the same period.
In Cairns, the occupancy rate declined by 5.5 percentage points to 63.0% in the 12 month period to September 2008.
Supply:
The Brisbane market experienced the highest supply growth, increasing by 9.5% in the 12 month period to September 2008.
The Perth market also experienced a notable increase in supply, up by 4.7% in the same period.
However generally, hotel supply across Australian cities remains limited. "The progress and timing of a number of hotel projects has been scaled back, with developers taking a cautious approach in the current financial climate' – Michael Thomson, Director Hotels & Leisure.
Demand:
Demand growth (as measured by the increase in Room Nights Sold) was strongest in Darwin with a 9.6% increase in the 12 month period to September 2008.
Demand also increased steadily in Brisbane and Perth, up by 5.7% and 5.3% respectively in the 12 month period to September 2008.
However, the other Australian hotel markets have seen generally lackluster demand growth. Room nights sold increased by only 0.5% in the Sydney market, and decreased by 0.9% in the Melbourne market in the 12 month period to September 2008.
The Cairns and Canberra accommodation markets saw the most significant declines in demand, decreasing by 6.1% and 4.3% respectively in the same period.
Average room rates:
Room rate growth remains modest in Australia's east coast cities:
Sydney hotels achieved room rate growth of 3.4% to $184.71 in the 12 month period to September 2008.
In Melbourne, hotels room rates increased by 8.1% to $170.74 in the same period.
Brisbane hotels achieved room rate growth of 6.1% to $156.65 in the 12 month period to September 2008.
However, "Perth hotels achieved the strongest room rate growth, rising by 19.2% to $153.13, closing the gap on Brisbane as Australia's third most expensive city to stay overnight" – Michael Thomson, Director Hotels & Leisure.
RevPAR:
RevPAR (Revenue Per Available Room) as a performance indicator showed positive growth in all of Australia's major hotel markets with the exception of Cairns.
In Cairns, declining occupancy rates have seen RevPAR fall for local accommodation providers, decreasing by 7.8% to $76.04 in the 12 month period to September 2008.
At the other end of the scale, accommodation providers in Perth saw RevPAR increase strongly by 19.8% rising to $127.15, while Darwin hoteliers saw RevPAR growth of 18.3%, rising to $106.06.
Colliers International National Director for Hotels & Leisure Michael Thomson says "while occupancy levels have fallen in a number of cities, hoteliers have generally maintained positive RevPAR growth on the back of steady increases in room rates".
