Strong CBD Occupancy Drive Rate Growth
The major CBD markets are maintaining strong year-to-date occupancy levels.
Sydney (85.8%), Perth, (83.2%), Melbourne (80.5%) Brisbane (78.3%) and Adelaide (73.9%) are all experiencing strong demand conditions, according to Australasia Jones Lang LaSalle Hotels. A number of Australia’s major CBD markets are trading at near full capacity and hotel operators are capitalising on these strong occupancy platforms by driving room rates.
Notably, this trend has seen most of the major CBD markets record solid YTD average room rate growth against the corresponding period with Brisbane (+9.2%), Sydney (+7.1%) and Melbourne (+2.4%) all doing well. The standout performer has been Perth recording YTD double digit rate growth of 10.3%.
Against this backdrop, revenue per available room has experienced an equally significant increase with Perth, Sydney and Brisbane now all trading above their respective 2008 peaks. In terms of RevPAR growth, Sydney, Melbourne and Brisbane have all posted strong gains of between 5% and 7% with Perth posting an excellent 13.4% increase.
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