Demand for Australian hotel rooms will grow at double the speed of supply over the next three years, propelling room rates into record territory, according to Deloitte Access Economics.
Its latest tourism and hotel industry outlook says, “the national average occupancy is set to add almost two points, approaching 70% by Dec 2016.
“This would mean a five percentage point growth in Australian hotel occupancies in as many years.”
The report says the Australian hotel investment pipeline remains steady with 70 medium term projects totalling 9900 rooms in the next three years.
In that period national room rates are forecast to grow 3.5% p.a. and Revenue per Available room (RevPAR) 4.5% p.a.
Sydney and Melbourne will have the strongest growth in RevPAR while yields in Perth are expected to be steady and slip slip slightly in the hot market of Darwin as new supply comes on.