Region’s hotels show best profit growth
THE Far North’s hotel sector has shown the best profit growth in Australia.
A Dransfield Hotels and Resorts report says the latest figures show that Cairns and Port Douglas ‘‘led the country in RevPAR (revenue per available room) growth, with a significant 12.4 per cent increase.’’
RevPAR is a performance indicator used by the hotel industry by multiplying a hotel’s average daily room rate by its occupancy percentage. The report covered the six months to June, 2013.
‘‘Cairns and Port Douglas demand growth has slightly exceeded expectations over the last 18 months on the back of very strong international visitor growth,’’ it said.
Room bookings by international visitors grew by 18.2 per cent, domestically by 2.5 per cent and overall by 5.7 per cent.
‘‘The Cairns market has started to come into its own from a very low base. Limited supply with good access to high growth international leisure markets promote rate growth.’’
The report said long-term growth needed to be backed by the refurbishment of ageing hotel rooms.
Queensland Hotels Association Far North accommodation division chairman Nic O’Donnell said the region was identified as ‘‘the stand-out performer in the nation and, as we know, is in recovery mode after a few lean years’’.
‘‘The 2013 results were well above forecasted predictions and moving forward will remain as one of the top growth regions along with Sydney.
Mantra’s north Queensland regional general manager Winston Hall said the group continued to forecast this year would continue ‘‘strong year-on-year performances’’ over the past three years.