Now Is The Time To Charge In A Serious Way
Analyst Ron de Wit had a simple message for the big end of town at a recent Property Council breakfast. “Now is the time to really start making some money. Now is the time to start charging in a serious way.” The reason is demand. According to Karen Wales of Jones Lang La Salle Hotels, 10 out of the 11 major markets experienced RevPar growth of more than 8% in 2007, while Perth, Sydney and Brisbane are running 80% plus average occupancies.
She believes RevPar in Brisbane, Canberra and Adelaide will have the strongest 2008 growth. But Wales says returns still have a long to go before they can justify the construction of new properties, which means the good times will be “stretched” this cycle with demand outstripping supply for the foreseeable future. Travel Trends: March 17, 2008