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Hotel trading performance strong, but clouds gather
"This latest available ABS data is encouraging but with worldwide uncertainty in global finance markets, many are asking what the immediate future holds for hotel trading performance," said Mr Troy Craig, Executive Vice President, Jones Lang LaSalle Hotels.
Mr Craig added, "On a positive note, the Australian dollar will cease to be a block on inbound tourism and should partially offset the expected softness in domestic demand."
A general lack of new supply in most markets around Australia should also help insulate certain markets from any significant downturn in hotel trading performance.
Based on the strong year-to-date June 2008 results but also taking into account anecdotal evidence of softening trading levels in the second half of 2008, Jones Lang LaSalle Hotels expects all capital cities to end the year with RevPAR growth ranging from 3% in Sydney and Brisbane to 16% in Perth. "The outlook for 2009 in the current environment is for RevPAR (Revenue Per Available Room) growth to slow noticeably in all markets," said Mr Craig.
Out of all major Australian markets, Perth is likely to again lead the pack in 2009 to post solid RevPAR growth.
Hotel Trading Performance Highlights - June quarter 2008
Tourist Accommodation Performance - Q2 2008
Source: ABS Survey of Tourist Accommodation
The global team comprises over 270 hotel specialists, operating from 31 offices in 18 countries. The firm's advice is supported by a dedicated global research team, which produced over 45 publications in 2007 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com
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