Australian hotel room rates in key markets may increase by up to 45% over the next three years, driven by high demand and low supply analysts say.
According to a report by Travel Trends, room rates rose for the third consecutive quarter in March, with Perth seeing increases of 16%, Canberra 12.8% and Brisbane 9.8%.
Occupancy rates in the country are also regularly topping 80%, the report says.
Despite the high occupancy and increased rates, analysts say a new hotel development cycle is not imminent due to increased construction costs.
“The era of over-supply that plagued the industry has now balanced out and there is a more realistic attitude towards new supply, with the emphasis more on upgrading existing product than building new hotels,” a hotel operator was quoted as saying.