24 Jan Melbourne Hotels Keep on Cranking
STR’s preliminary data for Melbourne hotels in 2017 is in, and it is showing another strong year for the city’s lodging industry. All KPIs are up over the previous year.
-Occupancy: +0.8% to 81.8%
-Average daily rate: +2.1% to AUD192.94
-Revenue per available room: +3.0% to AUD157.80
Once again, new hotel supply has been absorbed and then some. However, there is a lot of new hotel product still to enter the market, especially in the upscale sector. The Ritz-Carlton and W are under construction, the Shangri-La will soon break ground and it is likely Mandarin Oriental will also start soon. Other significant hotels on the way include the Novotel at the Melbourne Conference and Exhibition centre, another Novotel and Ibis in Little Lonsdale Street and the Next hotel on Collins Street. And that is just the beginning, with more room supply being announced and committed for the Melbourne CBD, Docklands and Southbank.
Can demand for Melbourne’s increasing hotel supply continue to stay ahead? It will require continued increases in international and domestic tourism, a strong economy, successful major events, and sensible government policy at all levels. The hotel industry in Melbourne also needs to have a strong voice to ensure its aspirations and concerns are heard, understood and acted upon.
Well done to all industry stakeholders for this continued success and may this marvellous run of strong demand for Melbourne hotels continue.