FROM THE CEO
Mantra Group has delivered on the promise to create significant growth over the last 12 months and looks forward to further expansion plans in FY18.
Identifying acquisition opportunities in Australia remains central to our strategic vision and as such it is imperative to stay on top of industry statistics and market movements.
During the past year, industry research shows an improvement in demand for the nation as a whole of 2.5%. Over the long term, we can expect average growth of 2 - 3% p.a. in supply and a 3 - 4% p.a jump in demand underpinned by climbing tourism visitor night forecasts. With demand consistently outperforming supply, RevPAR in Australia is expected to grow at more than 4% p.a over the long term.
FY17 has provided positive outcomes across Australia’s key accommodation markets. Notably, we observe strong annual RevPAR growth in Cairns (8.8%), Sydney (7.2%), Gold Coast (4.5%), Hobart (3.5%) and Melbourne (2%). Drawing on the strength of domestic and international tourism markets, annual hotel occupancy levels across Australia are also expected to reach an unprecedented 78%.
Pleasingly, these fundamentals are forecast to support healthy trading conditions in the short to medium-term. With six new properties secured in the past year representing more than 16% of growth in rooms under management and further announcements to come, I am eager to continue building on this success in FY18.