In 2015–16, accommodation room supply increased 1.4% to 249,131 rooms. The number of room nights occupied increased at a faster rate, up 3.7% to 59.8 million, which led to an increase in occupancy rates (up 1.2 percentage points, to 66.0%).
Where did they stay?
Continued higher occupancy in capital cities compared to regional areas (76.6% compared to 53.9%, respectively) means that the national RevPAR (revenue per available room) continued to increase (up $4 to $115). The RevPAR increase was seen in both capital cities and regions.
Growth in room supply occurred mainly in capital cities (81% or 2,794 rooms), however, room supply increased by 648 rooms in regional areas, due to an increase in establishments (up seven establishments to 3,020).
- Average daily rate
- Rooms 133,153 2.1%
- Occupancy 76.6% 1.1 ppt
- RevPAR $145 $4.20
- Average daily rate $189 $2.80
- Rooms 115,978 0.6%
- Occupancy 53.9% 1.2 ppt
- RevPAR $81 $3.70
- Average daily rate $151 $3.60
Room supply increased across all states except Tasmania (down 55 rooms to 6,840 rooms), while the largest growth was seen across New South Wales, Queensland and Victoria.
In general, occupancy increased nationally, while there were some decreases across states at both the capital city and regional level.
RevPAR continued to increase across Australia (up $4.20 to $115), and was driven by strong growth in New South Wales (up $8.70 to $129), the Australian Capital Territory (up $7.60 to $120), and Victoria (up $3.70 to $125).
What standard of accommodation did visitors prefer?
As seen in previous years, luxury-type accommodation continued to draw strong demand with occupancy rates above 80% across the year. The strong occupancy and higher RevPAR ($221 per available room) meant that, despite only holding 11% of rooms (and 3.4% of establishments), luxury properties accounted for 21% of takings.
This is in stark contrast to budget hotels, where average occupancy rates remained at 48.4% across 2015–16. Lower occupancy rates meant that RevPAR was just $49 – accounting for only 2% of takings.
The largest share of rooms were in the ‘Up Scale’ category accounting for almost 50% of rooms (123,898 rooms).