Sydney and Melbourne will experience modest growth in hotel room rates next year, according to a new report.
The Hotel Monitor 2020, published by American Express Global Business Travel (Amex GBT), Melbourne is expected to see a two per cent increase in room rates in 2020.
The report noted that a two per cent increase in room rates reflects the steady growth of Melbourne as a key business travel destination in Australia.
“Supply has been growing, particularly in the luxury sector, and is balanced with demand, meaning only modest rate rises are expected,” the report said.
As for Sydney, the report said an injection of new capacity into room stock in 2019 and 2020 will push down occupancy in the NSW capital.
Room rates are expected to rise by only one per cent in Sydney, sustained by a full calendar of large national and international events coming to the city.
“Despite being a gateway city, Sydney has relatively limited luxury inventory,” the report said.
“This looks set to change, with up to 2,000 rooms under construction in and around the city.”
Jo Sully, vice president and regional general manager of Amex GBT, said the rise in hotel prices was reflective of steady growth in the Asia Pacific.
“Sydney and Melbourne are key destinations for business in Australia, and it’s great to see these destinations continue to contribute to the local economy, at a slow yet steady rate,” Sully said.
Elsewhere in the Asia Pacific, hotel prices are set to rise five per cent in Bangalore, four per cent in Tokyo and three per cent in Hong Kong.
Bangkok, Ho Chi Minh City, Kuala Lumpur, Shanghai and Singapore are all predicted to see room rates rise by two per cent, while Beijing is tipped for a one per cent increase.