Sport events score big points for Melbourne hotels
Melbourne’s hotel accommodation market remains buoyant on the back of international and local sporting events, according to a report from HTL Property.
The city is benefiting from a measured increase in new hotel rooms from major operators but more speculative projects are falling by the wayside. Occupancy levels are high and, in turn, average daily rates and revenue per available room is also elevated.
Most recent data for February showed peak occupancy of 89.1%, a new monthly high, with average daily rates for rooms hitting $197.74.
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“Strong international visitors, dominated by the family market, enjoy the Melbourne CBD location; while domestic visitors like to travel further out of town in order to explore the natural wonders,” HTL Property head of research Vanessa Rader says.
But there is caution about new buildings coming on line, which has kept competition high and put pressure on occupancy levels and revenue per available room.
“Inventory supply is hugely topical in and around the accommodation landscape nationally, and valuers and lenders are becoming increasingly mindful of the volume of product slated in future,” HTL Property director of Asia-Pacific Andrew Joliffe says.
Joliffe called for government investment in infrastructure and major events to support the increased volumes that hotels proposed.
Rader says Victoria is a highly sought-after accommodation market to invest in, driven by its variety of visitors.
Joliffe says demand for accommodation assets remains high, but limited stock has resulted in 2018 recording low sales volumes. Sales turnover last year topped $400 million, but was about 40% down on 2017.
This article originally appeared on www.theaustralian.com.au/property.
