MID-POINT REACHED IN PERTH HOTEL CONSTRUCTION CYCLE

The hotel construction boom in Perth has passed the mid-point of the supply of new hotel rooms.

The Tourism Council’s 2018 Perth Hotel Development Report found there were 2,019 hotel rooms created in Perth in 16 new hotels, since 2012.  The report also found that a further 1,877 hotel rooms in eight new hotels are under construction in Perth.

The report also found there are a further eight new hotels proposed with development approvals.

In presenting the report, Michael Campbell Director Lucid Economics said demand for hotel accommodation in Perth will need to increase by 30% over the next five years, to ensure current levels of hotel room occupancy are maintained after all the new hotels are completed.

Michael also said room occupancy rates have actually remained steady despite the addition of over 2000 new hotel rooms in Perth.  However, yields from hotel room use has dropped away with the additional supply.

Perth Hotel Development Overview*

Development Stage             

                                                                                                      Hotel                 Rooms    

Completed 2012 to Date                                                              16                     2,019

Renovated                                                                                         3                        452

Under Construction                                                                         8                     1,877

Under State Government Contract                                               2                        440

Building Permits                                                                               2                        286

Development Approvals                                                                 8                     2,387

 

*Tourism Council WA