Hotel room rates in Australia grew just 1% in 2014 despite high demand across key markets while Asian room rates fell for the second year running and are barely ahead of where they were 10 years ago, according to the latest Hotel Price Index.

The average price paid for an Australian hotel  room during 2014 was $177, up from $175 in 2013.

Rates grew slightly on the east coast – Sydney and Melbourne both up 1% to $200 and $177 respectively while Brisbane room rates increased 2%, reaching $172.

The end of the mining boom hit rates in Perth (-3% to $184) and Darwin, where there was a -4% fall in the average nightly rate to $200.

Three of the smallest Australian CBD markets performed the best, according to the survey.

Rates in Hobart ($176) and Adelaide ($153) both increased 6% during the year.

One curious result was Canberra, where local hoteliers have been complaining about heavy discounting hitting returns.

Yet the Index says the average rate of $185 in 2014 was 3% more than in 2013.

“Internationally, Asia was the only region in the world where hotel guests paid less on average from a year ago and were only slightly higher than they were 10 years ago,” a press release stated.

“It was the second consecutive decline in hotel prices in Asia.”

Abhiram Chowdhry, Vice President Asia-Pacific of, commented Asia and the Pacific were the only regions where prices did not rise in the past year.

“Asia was the only region worldwide to record an actual decline in hotel prices, down two per cent from 2013, and a repeat of the previous year’s performance,” he said.

“Standing at 104, the Index for Asia is now only four points higher than where it stood ten years ago.

“Since Asia’s peak in 2007, when the Index stood at 131, it has lost 27 points and is now in the lowest position worldwide, and four points behind Europe and the Middle East.

“Meanwhile, in the Pacific, hotel prices remained in the doldrums following a third consecutive year of zero growth.

“However, despite the stagnation of recent years, compared with the rest of the world, the Pacific has recorded the best recovery in hotel prices since the global economic downturn, and is ranked third highest, behind the Caribbean and Latin America.”


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