STRONG QUARTER FOR MANTRA GROUP HOTELS
Leading Australian accommodation provider, Mantra Group, has experienced a strong start to 2012 reporting a 5% increase in revenue and a 7% growth in RevPAR for the quarter (Jan-Mar) compared to the same period last year.
Mantra Group CEO Bob East attributes the uplift in CBD hotels to increased activity in the mining sector and consistent leisure travel capitalising on major events and festivals which also resulted in gains for regional tourism. The business travel sector has also made a strong return in all capital cities.
“It was encouraging to see our CBD properties perform ahead of the market either in occupancy, RevPAR or rate growth, as well as regional areas such as North Queensland which also performed well during what is traditionally the low season,” he said.
Highlights include Perth where a 31% RevPAR growth was driven by strong rate growth as a result of the region’s mining boom. Similarly the year on year growth in occupancy and rate to see a 9% RevPAR growth in Brisbane reflected an increase in demand from the mining sector and ongoing demand from leisure travellers.
Even in a competitive market like Melbourne, Mantra’s six CBD properties managed to remain ahead of the market in both occupancy and rate with a 4.2% increase in RevPAR year on year. The Mantra association with Pat Rafter obviously paid dividends with a 97% occupancy level throughout the Australian Tennis Open. Similar levels were also maintained for the Australian Grand Prix.
Likewise, Adelaide capitalised on the special event period that included Tour Down Under and Clipsal 500 with 10.5% increase in RevPAR across the Group’s four CBD hotels. January alone saw a 25% increase in occupancy.
Sydney is still experiencing a drop in rates for 5-star product which further impacts on mid-range hotel RevPAR across the industry. In addition the January-March event period did not prove as strong this year with RevPAR being maintained at the same levels experienced last year.
Regional areas also enjoyed strong results for the quarter with a 17% increase in RevPAR for Tropical North Queensland. The exceptional occupancy levels experienced for this year’s Chinese New Year celebrations – a massive 218% uplift in bookings - were a contributing factor to region experiencing a bumper period despite it traditionally being low season.
The Gold Coast also experienced a 5% increase in room nights sold compared to the same period last year. The combined elements of good weather during the January holiday period and capitalising on events such as Magic Millions were contributing factors to these results.