The latest forecasts and figures in the hotels market: Jan 2020

Nationwide there was a slight fall in room occupancy and room rate, resulting in RevPAR decline of 1.9% to $137.18 in CY2019 compared to $139.90 in CY2018.  Most locations experienced RevPAR decline, but Adelaide, Brisbane and Hobart were the shining lights with RevPAR increases of 1.8%, 2.8% and 7.9% respectively. Tasmania’s popularity with tourists continues, Brisbane’s new hotel supply boom is over and the solid economic performance of South Australia have all contributed to an increase in hotel performance.

Savills Valuations regularly prepare trade forecasts for hotel owners and operators, for valuation and consultancy purposes. In today’s constantly changing and competitive market, forecasting is becoming increasingly important. At the start of each calendar year, we issue our forecasts to clients or at industry events. Savills pride ourselves on providing well-researched and accurate advice. Our forecast 2019 RevPAR for Brisbane and the Gold Coast were only $0.68 and $0.30 different to the actual results. In fact, Savills accuracy for all major cities were within 5%. 

The recent bushfires will no doubt have a negative impact on Australia’s appeal to international tourists, but Australia is still very much open for business and a world-class destination. We hope any negative impact is extinguished quickly.

Should you like to discuss how Savills can assist your business to forecast for the year ahead, please do not hesitate to get in contact with me.