A positive start for the new year with the latest hotel performance numbers for January 2025 released. Eight of ten measured Australian capital cities recorded RevPAR growth, with six achieving double-digit increases.
The outlook for the financial year to date (FY25) remains strong. Nine of ten cities have seen RevPAR growth, with capital cities collectively posting a 4.2% increase. This continued demand growth, with limited new supply in most markets, is excellent news for existing hotel operators.
- Perth continues its phenomenal FY25, with RevPAR up 17.4% in January and 10.6% year-to-date. With limited new supply expected in the medium term, ADR and occupancy opportunities will remain. Monthly movement was evenly split between occupancy (+8.9%) and rate (+7.8%).
- Melbourne, off the back of the Australian Open, recorded 11.6% RevPAR growth. Melbourne Airport had its busiest month on record, with international travellers up 14% year-on-year.
- Sydney, Melbourne, Cairns, Darwin, and Brisbane all achieved double-digit RevPAR growth.
- Gold Coast saw a slight ADR dip (-1.6%), but occupancy gains (+3.5%) offset the decline.
- Brisbane, typically quiet in January, led rate growth across the market with a 10.3% uplift.
- Adelaide was the only market to experience a decline for the month, with RevPAR down 6% on the prior corresponding period as it continues to navigate recent supply additions.
- Australian capital cities collectively achieved 4.2% RevPAR growth in the first seven months of FY25.
- Sydney remains the market leader in occupancy (80.9%) and ADR ($323), with RevPAR growth of 2.2%. With minimal new supply on the horizon, existing owners and operators stand to benefit—provided their product and service match the premium pricing.
- Brisbane and Perth are battling it out with YTD RevPAR of $192 and $193, respectively. The YTD RevPAR represents a significant premium to Pre-COVID conditions, with Brisbane up 67% and Perth up 51%
- Gold Coast continues to hold an elevated ADR of $292, the second highest among major cities, though YoY growth has stabilised.
- Melbourne, as the largest city in terms of total rooms, appears to be through the bulk of its new supply and is starting to gain momentum on occupancy, which is at 73.8%YTD, up 3.5% YoY.
These results signal a promising trajectory for the Australian hotel sector in 2025, with YTD demand outpacing supply in every market. There are substantial opportunities for operators and investors alike.
Contact the team at Dransfield Hotels and Resorts to discuss these numbers in further detail or to see how this recent performance impacts your project.
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