Western Australia's demand in consumer spending increases with Perth CBD staycations exhibiting resilience in the market, says JLL’s Hotels & Hospitality Group, Senior Executive, Chloe Mason.
Demand in consumer spending increases with Perth CBD staycations exhibiting resilience in the market, says JLL’s Hotels & Hospitality Group, Senior Executive, Chloe Mason.
Despite the current challenges the hotels and hospitality industry is facing nationally, WA is seeing pent-up-demand in consumer spend and intrastate travel with many West Australian’s rediscovering Perth with CBD ‘staycations’ and venturing up and down WA’s coastline.
Pubs across the state continue to show their resilience with some trading higher than pre-COVID levels. Food and beverage spend was up 16% q-o-q as at July 2020 indicating consumers are taking advantage of the lack of restrictions in WA.
JLL’s Hotels & Hospitality Group, Senior Executive, Chloe Mason stated, “Positively, publicans are optimistic about the future of WA’s hospitality industry, and several groups are keen to expand their existing portfolio if the right opportunity presents itself.”
Chloe Mason told WILLIAMS MEDIA “Whilst WA's hard border remains, and it looks to be in place for some time longer, regional operators have the opportunity to leverage off this recent influx and secure repeat clientele over the coming years”.
Subiaco Hotel which brokered by JLL Hotels & Hospitality Group and JLL Perth Investment Sales.
In the accommodation sector, STR results indicate that Perth’s lodging market recorded the second highest occupancy in August out of the major cities. Whilst average daily rate (ADR) levels remain impacted; the decline is not as severe as what other capital cities are recording.
“These results are underpinned by Western Australia’s vast fly-in-fly-out workforce and the demand for intrastate leisure travel due to border restrictions. The state is well placed to capitalise on local tourism spend as almost two thirds ($8.5bn) of total 2019 tourism spend came from intrastate travelers alone,” Ms Mason said.
JLL Hotels and Hospitality indicate that investor demand remains strong and the continuation of recent heightened levels of transactional activity is expected to kickstart once borders re-open.