The Australian Accommodation Sector Reports a 2.9 Percent Increase in RevPAR for 2017-18

Sydney, Australia - Photo by Dan Freeman on Unsplash
The Australian Accommodation Sector Reports a 2.9 Percent Increase in RevPAR for 2017-18

The Australian accommodation sector reported a 2.9% increase in revenue per available room (RevPAR) during the 2017-18 financial year, according to STR’s collection of national accommodation statistics through the Australian Accommodation Monitor (AAM).

The Australian Accommodation Monitor is a national collection of performance statistics for accommodation providers in the country, including hotels, motels, serviced apartments and holiday cabins.

During the 2017-18 financial year (1 July to 30 June), Australia recorded a 1.1% increase in occupancy to an actual level of 76.0% and a 1.8% increase in average daily rate (ADR) to AUD188.02. The 2.9% rise in RevPAR was to an absolute level of AUD142.90.

Demand (room nights sold) in Australia rose 3.3% during the same time period, but a 2.2% increase in rooms available (supply) mitigated occupancy growth. Midscale and Economy properties reported the largest RevPAR increase (+3.7%).

During the financial year, 58 new properties representing 6,889 rooms opened across the country.

“At the state-level, the Northern Territory saw the most significant growth in RevPAR (+7.3%) as a benefit of strong demand through the final construction phase of the gas projects,” said Matthew Burke, STR’s regional manager for the Pacific. “Queensland and South Australia also recorded strong performance in all regions with 5.8% and 5.7% RevPAR increases, respectively. Western Australia was the only state to see RevPAR decline as it continues to transition demand and manage an increase in supply, particularly in Perth. The silver lining was demand growth of 5.0%, which exceeded supply growth of 4.5%.”

Of the capital tourism destinations, Sydney remained the front-runner with the highest actual occupancy (85.1%) and ADR (AUD229.77). Gold Coast had one of the highest RevPAR increases of 6.7%, which was helped by the XXI Commonwealth Games held in April.

“Regional accommodation performance was mostly positive,” Burke said. “Of the reportable regions, only one showed a negative RevPAR comparison. Regions continue to benefit from growing tourism, corporate travel and major infrastructure projects. Additionally, those regions which were largely resource-mining oriented have also begun to rebound after being affected by changing demand and increased supply.”

STR will release its 2018-19 financial year results in October 2019 with subscription options available for monthly updates.

Additional information

To review a summary and data tables of Australian accommodation performance, please visit More granular reports are available for purchase. Please contact STR for more details.

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