QHA-Review_April_Digital

NEWS
AN OPTIMISTIC OUTLOOK
QUEENSLAND SWEEPS THE PODIUM IN 2023 HOTEL PERFORMANCE IMPROVEMENT.
QHA REVIEW | 10
Almost all Australian tourism and accommodation
markets are coming off a record year with 2023 being
one of, if not the best, 12 months of trade recorded.
While many markets documented strong gains, it was
Queensland that was the standout performer.
Strong occupancy, coupled with substantial increases
in average daily rates (ADRs), have produced sharp
rises in revenue per available room (RevPAR) levels
across the board.
According to Smith Travel Research’s latest year
to date December numbers, RevPAR performance
for 2023 compared to 2019 saw the three major
Queensland markets take the top three spots – first,
Brisbane with a substantial 46% uplift, second, Cairns
with an outstanding 34% increase and then the
Gold Coast with an impressive 33%, coming in third
nationally.
These sharp rises in RevPAR can be attributed to the
substantial gains in ADRs, which rose a staggering
52% (Cairns), 47% (Brisbane) and 38% (Gold Coast),
with occupancy at, or slightly below, 2019 levels.
These markets were all coming off a low base,
however, there does seem to be a generational shift in
ADRs in Queensland.
This strong trading performance has certainly not gone
unnoticed by investors, with Queensland elevating to
second nationally in terms of annual hotel transaction
volumes. 2023 saw approximately $564 million in hotel
transactions in Queensland, or 23.2% of the overall
national sale volume of approximately $2.43 billion for
the calendar year. This total sale volume for the state
was more than double the approximate $271 million
recorded in 2022, and shows that Queensland is
clearly on hotel investors’ wish lists.
JLL Hotel & Hospitality Group’s senior vice president,
Gareth Closter, said throughout 2023, the business
witnessed an increase in the depth of the investor
market for hotel assets in Queensland, particularly in
the second half once interest rates stabilised.
“Queensland is seen to offer real value compared
to the larger markets of New South Wales and
Victoria. The growth story, particularly in South East
Queensland, is undeniable,” he said.