Long weekend a bonanza for hotel operators
Meanwhile, data for the June quarter, from Dransfield Hotels and Resorts, shows the capital city hotel market grew at half the rate of expectations. The Hotel Futures report said the average city revenue per available room (revPAR) increased 1.1 per cent compared with the previous corresponding period.
Nationally, Australian hotels appear relatively stable, however there is wide divergence in performance between individual cities. The six months to June were steady as revPAR increased by a nominal 0.9 per cent, with a fair way to travel in the second half to reach the forecast 6.2 per cent annual growth. "In the June 2013 quarter, hotels in Sydney recorded 5.3 per cent revPAR growth. Demand increased by 4 per cent and fully absorbed the 1.4 per cent rise in room stock," the report said.
Tourism Accommodation Australia's Carol Giuseppi said 75 per cent of rooms in Sydney were four and five star, with 1500 rooms to be added, predominantly in this category, by 2017 (including Barangaroo and International Convention Centre, Darling Harbour).
"The real need is in the three- to four-star category, and as always we advocate for sustainable demand-led supply," she said.
General manager for Accor Hotels in NSW, Scott Boyes, said its hotels in the CBD reported a record weekend with occupancy and revPAR at all-time highs.
"Over the bumper Labour Day weekend, Accor's Sydney CBD hotels (which include Pullman, Sebel, Novotel, Mercure, ibis and MGallery hotels) were at a record 99 per cent occupancy," he said. He said the long weekend, including the Fleet Review, NRL grand final and One Direction concert pushed performance 15 per cent higher than the British and Irish Lions tour - the previous high.
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Sydney hotel operators reported one of the busiest long weekends in years, with occupancy and revenue surging. Accor said its CBD hotels hit a record 99% occupancy, and event-driven demand (Fleet Review, NRL grand final, One Direction concert) pushed performance about 15% higher than the previous high set during the British and Irish Lions tour.
The Hotel Futures report from Dransfield Hotels and Resorts found that average city revenue per available room (revPAR) increased 1.1% in the June quarter compared with the previous corresponding period, indicating modest city-level growth.
Nationally, Australian hotels appeared relatively stable: revPAR rose a nominal 0.9% for the six months to June. The report noted wide divergence between individual cities and said there was still a fair way to go in the second half to reach the forecast 6.2% annual growth.
In the June 2013 quarter, Sydney hotels recorded 5.3% revPAR growth. Demand increased by 4%, which fully absorbed a 1.4% rise in room stock during the period.
Tourism Accommodation Australia said around 75% of Sydney rooms were four- and five-star, and about 1,500 rooms were scheduled to be added by 2017, including projects at Barangaroo and the International Convention Centre/Darling Harbour.
Yes—industry commentary highlighted that the real need is in the three- to four-star category, and Tourism Accommodation Australia advocates for sustainable, demand-led supply rather than oversupplying higher-end rooms.
Accor’s Sydney CBD hotels that reported record occupancy include Pullman, Sebel, Novotel, Mercure, ibis and MGallery, with the group hitting a 99% occupancy rate over the bumper Labour Day weekend.
Everyday investors should note that event-driven demand can produce short-term spikes in occupancy and revPAR (as seen with the long weekend), national performance can look stable while city-level results diverge, and planned supply additions—especially concentrated in higher-end rooms—may affect future pricing and occupancy dynamics. Monitoring city-specific revPAR, occupancy trends and new room supply will be important indicators.
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