Sydney well ahead of other Australian cities in hotel rates and revenue: Savills

Sydney well ahead of other Australian cities in hotel rates and revenue: Savills
Sydney well ahead of other Australian cities in hotel rates and revenue: Savills

Asian travellers, mainly from China, Japan and Malaysia, drove double digit growth in both Visitors and Visitor Nights, according to Savills’ latest Hotel Market report.

For the year to date 2017, Sydney had the highest Average Daily Rate (ADR) at $227.24 with an occupancy of 85.8 percent, well above the national average occupant of 74.5 percent and ADR of $185.06.

Growth was impressive for most cities, with Cairns at the top with an ADR growth of 7.4 percent followed by Canberra at 6.6 percent.

Sydney had a 5.5 percent growth, but Melbourne’s was surprisingly low at just 1.1 percent.

Among the capital cities, only Perth, Brisbane and Darwin showed falls in their ADRs with Perth highest with an 8.4 percent drop.

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Sydney well ahead of other Australian cities in hotel rates and revenue: Savills

Highlights 

  • Sydney wide market establishes a RevPAR, or revenue per available room gap of $40+ over next best market performers (Melbourne wide market) 
  • Sydney Luxury hotels achieved 89% Occupancy and $353 ADR, contributing to double digit RevPAR growth of 10.4% to record $315 RevPAR, which is $40+ ahead of Melbourne’s Luxury market (90% Occupancy, $304 ADR and $273 RevPAR).
  • Melbourne continues its struggle to grow occupancy (as new hotel supply and generic apartment product enters the market). 
  • Hobart maintains its leisure destination popularity and achieves third highest RevPAR of $152 across Australia.
  • Canberra government and corporate activity boosts room night demand to drive highest RevPAR growth for the period.
  • Gold Coast grows ADR and holds RevPAR despite softer demand.
  • Adelaide continues its steady RevPAR growth performance buoyed by room night demand growth 
  • Cairns lures Chinese visitors to record the second highest RevPAR growth for the period 
  • Brisbane ADR’s fall as hotels fight to hold/ attract business 
  • Darwin builds occupancy on room night demand growth as ADR falls to achieve static RevPAR 
  • Perth occupancy and ADR fall as new supply exceeds room night demand growth
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Hotel Savills

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