Deloitte: Hotel occupancy rates hit new peak

Continued growth in domestic visitor nights, particularly for business travellers, saw further improvements in national hotel occupancy rates in the year to June 2012.Occupancy rates nationwide reached 65.9% in the year to June 2012, up from 64.8% over the year prior.

Releasing Deloitte’s Q4 Tourism and Hotel Outlook, Deloitte Access Economics’ Lachlan Smirl said occupancies were forecast to continue to grow over the medium term as demand continued to outstrip supply in the capital cities.

Other key points from the Outlook include:

• Room nights sold are forecast to grow by an average 1.7% p.a. over the next three years
• Growth in room nights available is forecast to average 1.1% p.a over the same period
• Average room rates are forecast to grow by 3.7% p.a., reaching $164 in the year to June 2015
• Projected average yield per room (RevPAR) is forecast to increase by 4.3% p.a. over the next three years, from $97 per room in the year to June 2012 to $110 per room in the year to June 2015
• Consistent with the forecast for room rates, the outlook for yields has eased over the second half of 2012.

Deloitte’s quarterly Tourism and Hotel Outlook utilises the forecasting, modelling and analytical expertise of Deloitte Access Economics, one of Australia’s leading economics advisory practices. The Outlook also draws on Deloitte’s real estate industry experience and insights, and a range of other sources, including hotel data generated by STR Global Limited.