Hotel rates rise

According to the article, hotel operators expect higher room rates as more international travellers take advantage of the lower Australian dollar, which is increasing demand for Australian hotel rooms.

The Hotels.com Hotels Price Index showed Sydney hotel prices rose 9% year‑on‑year to an average of $190 per night, while Melbourne prices increased 4% to an average of $163 per night.

The article says the lower Australian dollar is attracting more international travellers to Australia, and that increased inbound travel is prompting hotel operators to expect a rise in room rates.

Johan Svanstrom, vice‑president of Hotels.com Asia Pacific, said the global hotel industry's recovery was tracking well, noted that currency fluctuations have affected some growth rates, and said continued growth in business and leisure travel is likely with the expansion of low‑cost air travel.

Yes — the article notes Sydney is preparing for two new premium‑grade hotels at Barangaroo South and Darling Harbour, expected by 2016.

The article reports that the expansion of low‑cost air travel is likely to support continued growth in both business and leisure travel across the region, which in turn can sustain demand for hotel rooms.

The price trends and commentary come from the Hotels.com Hotels Price Index and comments by Johan Svanstrom, vice‑president of Hotels.com Asia Pacific, as reported in the article.

The article suggests that rising room rates in major Australian cities and a recovering hotel industry—driven by stronger inbound travel tied to a lower Australian dollar and growth in low‑cost air travel—are trends investors may want to monitor when watching the hospitality and travel sectors.