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Glad tidings as Aussie accom growth accelerates

December 5, 2018 Headline News No Comments Email Email

Hotels in Australia are doing well, with the Australian accommodation sector reporting a 2.9% increase in revenue per available room (RevPAR) during the 2017-18 financial year.

The result derives from STR’s collection of national accommodation statistics through the Australian Accommodation Monitor (AAM) – a national collection of performance statistics for accommodation providers throughout Australia, including hotels, motels, serviced apartments and holiday cabins.

During the 2017-18 financial year (1 July to 30 June), Australia recorded a 1.1% increase in occupancy to an actual level of 76% and a 1.8% increase in average daily rate (ADR) to AUD188.02. The 2.9% rise in RevPAR was to an absolute level of AUD 142.90.

Demand (room nights sold) in Australia rose 3.3% during the same time period, but a 2.2% increase in rooms available (supply) mitigated occupancy growth. Midscale and Economy properties reported the largest RevPAR increase (+3.7%).

During the financial year, 58 new properties representing 6889 rooms opened across the country.

“At the state-level, the Northern Territory saw the most significant growth in RevPAR (+7.3%) as a benefit of strong demand through the final construction phase of the gas projects,” said Matthew Burke, STR’s regional manager for the Pacific.

“Queensland and South Australia also recorded strong performance in all regions with 5.8% and 5.7% RevPAR increases, respectively. Western Australia was the only state to see RevPAR decline as it continues to transition demand and manage an increase in supply, particularly in Perth. The silver lining was demand growth of 5%, which exceeded supply growth of 4.5%.”

Of the capital tourism destinations, Sydney remained the front-runner with the highest actual occupancy (85.1%) and ADR (AUD 229.77). Gold Coast had one of the highest RevPAR increases of 6.7%, which was helped by the XXI Commonwealth Games held in April.

“Regional accommodation performance was mostly positive,” Burke said.

“Of the reportable regions, only one showed a negative RevPAR comparison. Regions continue to benefit from growing tourism, corporate travel and major infrastructure projects. Additionally, those regions which were largely resource-mining oriented have also begun to rebound after being affected by changing demand and increased supply.”

Supported by the Australian Trade and Investment Commission (Austrade), STR collects performance data from accommodation providers throughout Australia. Properties submitting their data to STR receive complimentary benchmarking reports comparing their performance levels against local market averages. The program is free for any accommodation provider in Australia, with data privacy and confidentiality guaranteed. For more information, please visit:

Founded in 1985, STR operates in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights.

Edited by Peter Needham

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