While recent supply growth has impacted hotel performance across most of Australia's major markets, long-term projections are for all capital cities to return to growth. Dransfield's Hotel Futures 2019 report forecasts high occupancies to underpin growth of both demand (4.0 per cent p.a.) and RevPAR (3.3 per cent p.a.) annually to FY2027.
Recent STR figures show growing supply in all major markets is having a dampening impact on occupancy and rates as the number of new rooms added is growing faster than additional rooms sold. Sydney and Hobart are acheiving occupancy in excess of 80 per cent for YTD July 2019, with Melbourne's falling just under this. Sydney was the top performer nationally in terms of RevPAR. For more information, visit STR's website.
In its Futures 2019 report, Dransfield Hotels & Resorts projects Australian major city RevPAR to grow at a healthy average of 3.3 per cent p.a. over the long term (to FY 2027) and 4.1 per cent after FY2019. They expect a positive supply and demand equation and sustained high occupancy levels will create rate growth opportunities, with growth expectations still well above recent history, which averaged 2.2 per cent p.a. over the last five years.
Colliers International reported a total of $2.2 billion in hotel transactions for 2019 based on 45 deals, with key highlights including:
Source: Colliers International Hotel Sales 2019