Canberra is leading Australia's hotel market: CBRE report

Canberra holds the crown as the nation’s top performer in hotel markets for the first quarter of 2017.

A recently released report from property expert CBRE shows the territory’s hotels surged from a traditional middle pack position to number one on the back of a strong opening performance.

Canberra delivered big increases in occupancy rates, average daily rates (ADR) and revenue per available room (RevPAR).

Occupancy increased by 3.2 per cent to 75.9 per cent, ADR by 2.9 per cent, and RevPAR grew 6.2 per cent to $128.

Wayne Bunz, CBRE’s national director of hotels, says a range of factors saw Canberra leapfrog Cairns, the annual leader.

“These strong results are due to a limited supply pipeline, substantial increase in domestic tourists and strong business travel,” he says.

“Limited international tourist access to the city means the market is highly dependent on domestic tourism.”

Other key achievements show:

• 14 per cent increase in nights spent in hotels to just under three million

• 44 per cent of stays were business trips and 34 per cent for holiday

• China, US and New Zealand were the main sources of international guests

• NSW, Victoria and Queensland were the main source of domestic guests

• Average length of hotel stays was 2.2 nights.

Bunz says Canberra is being discovered for a variety of reasons and this could be a contributor to a surge of popularity.

“It’s relatively easy to get to, it’s easy to get around, there are plenty of local attractions and the food scene has evolved dramatically,” he says.

“Added to that, as a centre of government, it is a constant destination for the business traveler.”

The CBRE director says that some of the new property offerings like the Little National Hotel and Hotel Hotel were adding to the perception of Canberra as a boutique hotel capital.

There are a number of future hotels and refurbishments in the pipeline including the Mantra Canberra, the Malmo Bruce and a number for GEOCON’s Abode brand. It already operates hotels in Tuggeranong, Woden, Narrabundah and Gunghalin.

Rien Donkin, general manager of the Abode Group, says another four hotels are in the DA process or being planned

They will be opened at Murrumbateman, Kingston, Braddon and Belconnen.

“We’re definitely noticing the increased demand from last year,” he says.

“People are saying Canberra is a cool, little capital and a great option for weekend getaways.”