Perth driving hotel sector

Perth driving hotel sector
By admin

Perth room rates are set to overtake Sydney and Melbourne to become the most expensive in Australia by 2015, according to a new report.

Consultancy firm AHS Advisory’s Hotel Performance Outlook August 2012 showed the average room rate in the West Australian capital would hit $260 in three years time, well ahead of Sydney at $220 and Melbourne at $200.

Brisbane too could overtake Melbourne, it revealed, hitting $206 by 2015.

However, Sydney held onto the highest rates in the country in 2011 at $188 citywide, climbing 6.8% over the year, although well below projected double digit growth. Melbourne followed with $178, with subdued growth of 2.7% despite room occupancies in excess of 80%. Perth came third with $177, recording growth of 13%.

Tropical North Queensland was the only region to record a decline in room rate for the year as it attempted to drive room occupancies which averaged 57% for the year.

“This will hopefully have changed by 2015, with room rates matching at least inflationary growth,” the report said.

Meanwhile, Perth also emerged as a serious player in terms of revenue per available room in 2011. It recorded 17% growth to hit just over $150, ahead of Melbourne with $143 and closing in on Sydney with $161.

Similar growth is expected for the WA capital in 2012, before slowing to single digits.

“Still, RevPAR by 2015 will be well ahead of all other cities, with increasingly dated stock and only limited new supply entering the market,” the report projected. “Guests may complain, hoteliers will not.”

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