Melbourne and Sydney set for modest hotel rate rises, but strong pipeline could see Brisbane and Perth levels slip
The recently released ‘The Hotel Monitor 2020’, from the Global Business Consulting team at American Express Global Business Travel (GBT) showed an expected steady growth globally for most key cities. In Australia growth was predicted for both of the countries biggest cities with rates in Melbourne sit to eclipse those in Sydney.
Melbourne is expected to see a +2% increase in room rates in 2020. The fourth-fastest growing city in the developed world, growing by 125,000 people a year, Melbourne is predicted to be Australia’s biggest city by 2028. The +2% increase in room rates would seem to reflect the steady growth of Melbourne as a key business travel destination in Australia.
However, Sydney, currently the main gateway to Australia, is only expected to see a +1% increase in room rates in 2020. Sydney often has high occupancy in its limited rooms, so it’s an interesting observation that no major changes are expected in its hotel pricing for 2020.
When taking a global consideration hotel prices in most key cities will experience “only modest rises” in 2020, according to GBT’s Hotel Monitor 2020 report. The study predicts that a global boom in hotel construction is increasing the supply of guest rooms just as international trade tensions put a dampener on demand. Together, it says, these factors “will restrict the ability of hotels to raise room rates in many business destinations”.
READ MORE via The Blue Swan Daily: Melbourne and Sydney set for modest hotel rate rises, but strong pipeline could see Brisbane and Perth levels slip