Australian hotels still attractive globally

By Gerv Tacadena | 13 Sep 2019

While a surge of new openings has dampened sector revenues, Australia's hotels are still amongst the best-performing assets globally, according to a study by STR.

For the first seven months of the year, hotels in Australia and Oceania region achieved the second-highest occupancy rate at 73.4%, trailing closely behind Northern Europe's 74.1%.

Furthermore, despite the Australian dollar falling substantially against the US dollar, the average daily room rate in the region hit US$137 a night. In this category, the region ranked fourth, behind the Caribbean, the Middle East, and Southern Europe.

Also read: Aussie Commercial Market Outpaces Japan, China

In terms of revenue per available room (RevPAR), Australian hotels averaged $101, ranking second to the Caribbean region, which recorded a better rate at $160.

A separate report by CBRE Hotels indicated that local hotels were benefitting from the weaker Australian dollar. This made local hotels more attractive to international travellers looking for bargain destinations, said CBRE associate director of research Ben Martin-Henry.

"A weaker AUD will continue to support growth in international visitors and the amount they spend in Australia, while also encouraging Australians to travel domestically rather than internationally due to stronger purchasing power at home," he told The Australian Financial Review.

The apparent slowing in the hotel scene in Australia is expected to continue. In fact, a recent JLL report project the value of major hotel sales to hit $1.5bn this year, which is below historical averages.

However, Australian hotels are still considered competitive, said JLL Hotels & Hospitality Group executive Peter Harper.

"Despite the lack of sale offerings, the demand from investors is still strong with offshore groups continuing their historical focus on the market, while domestic groups have increased their activity," he told the AFR.

Top Suburbs : east victoria park , flemington , alexandria , midland , canterbury


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here