Dransfield declares Cairns (& Port Douglas) capital of North Queensland
Dransfield have posted a year end review of their 2016 Hotel Futures:
In FY2016, the Cairns & Port Douglas STA market was the highest growth Capital city market in the country, buoyed by resurgent international and domestic leisure visitors
• Significant RevPAR growth of 11.2% exceeded our already robust 9.2% expectations as Australian leisure markets continue to prosper
• Occupancy levels improved 3.3 points to 68.2%, facilitating rate movement. This is the highest level achieved in more than a decade
• Rates grew by a strong 5.8%, slightly above our expectations • The STR sample of generally higher quality hotels recorded similar RevPAR growth of 11.6%, with slightly higher occupancy growth than the ABS set
• Certainty surrounding the proposed Aquis development has not progressed, stalling prospective developers plans for additional development. It is unlikely that we will materially alter our low supply expectations
• Long term RevPAR expectations for 5.3% growth p.a are expected to be maintained in Hotel Futures 2017 off a slightly higher base.
While the accolade of Cairns as a capital city is appreciated the Dransfield review covers the top ten markets which also includes such as Gold Coast.
The comments on Aquis are consistent with previous comments in Dransfield reports that the uncertain bona fides of the proposal may have been a net negative for Cairns.
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