Room rates optimism as we set benchmark
FAR North resort and hotel rooms are becoming more valuable with the region outshining southern competitors in a key accommodation industry yardstick.
The Queensland Accommodation Report for June shows the state’s north had strong growth in RevPAR – Revenue Per Available Room – compared to the same month last year, increasing by almost $12 on average.
Based on data from STR Global, the report found leisure markets “tended to do better”, with Brisbane experiencing decreases in both RevPAR and Average Daily Rate (ADR).
Tourism Port Douglas and Daintree executive officer Tara Bennett wasn’t surprised by the figures, which were released almost 12 months after the relaunch of Sheraton Mirage Port Douglas.
“You could say the Sheraton’s refurbishment was a catalyst for this,” she said.
“When we look back at the tough times during the Global Financial Crisis, room rates went down significantly.
“The Sheraton’s upgrade has, not only bolstered the property itself, but accommodation right across Port Douglas.”
Driven by resurgent tourism in Cairns, Palm Cove and Port Douglas, North Queensland’s RevPAR remains the highest in the state.
The figure is calculated by multiplying a hotel’s occupancy level by its Average Daily Rate.
Ms Bennett said further RevPAR growth could lead to more hotel and resort upgrades across the region.
“I do believe Port Douglas hotel room rates were undervalued three or four years ago, but we’re now getting back to a fairer playing field and investors are seeing good returns for the rooms they have,” she said.
The STR data, based on accommodation businesses with 10 or more rooms, showed Queensland had an occupancy rate of 65.6 per cent in June this year.
Tourism Tropical North Queensland chief executive Pip Close said RevPAR was an important performance indicator for the industry.
“Tropical North Queensland, while holding the same average occupancy as last year, has fared well with growth in revenue per available room,” she said.
“This is the key benchmark for the accommodation sector as it measures financial performance and is a gauge of how business is tracking.
“The (Far North) hotel sector would be happy it has outperformed last year’s figure.” The latest Deloitte Tourism and Hotel Market Outlook says Australia’s leisure destinations are leading the way with Tropical North Queensland maintaining “strong performance growth”.