Melbourne’s focus on meetings and events is driving strong hotel rate growth
With a 30% hike, Melbourne saw the biggest increase in hotel room rates in 2014.
Melbourne, Sydney, and Singapore took the top slots for cities with the most expensive average hotel room rates in Asia Pacific in 2014, according to the HRS Annual Hotel Price Radar.
Based on data collected from all hotel bookings made via the HRS hotel portal in 2014, the analysis looks at per night room rates and found that hotel rates fluctuated widely across Asia-Pacific throughout the year.
With a 30% hike, Melbourne saw the biggest increase in hotel room rates in 2014. This can be attributed to the burgeoning MICE sector in the city. A state-driven initiative seeking to position Melbourne as an events capital appears to have borne fruit in 2014.
Closely following Melbourne is sister city Sydney, which takes the second spot on the hotel room rate list.
“Hotel room rates are a key indicator of both tourism and business travel levels throughout the year and our analysis shows that companies have confidence in the APAC region and are continuing to push for global growth,” said Todd Arthur, managing director APAC at HRS.
HRS also revealed the impact of political instability in different countries. Bangkok experienced a 10% drop in room rates in 2014, as it struggled to overcome the impact of the unstable political situation that plagued Thailand mid-year.
Hong Kong, on the other hand, which takes fourth place on the list of most expensive cities in terms of hotel room rates, witnessed a drop of less than a percentage point even with the Occupy Central civil disobedience movement taking place in the second half of the year.
Top APAC Destinations Room Rate per night in 2014 (in SGD) Rate development compared to 2013 in %
Melbourne - S$289.2 +31.40%
Sydney - S$256.2 -4.7%
Singapore - S$235.8 +3.80%
Hong Kong - S$223.2 -0.7%
Tokyo - S$212.2 +0.50%
Mumbai - S$128.9 -11.10%
Seoul - S$117.6 -17.10%
Beijing - S$113.2 +3.10%
Kuala Lumpur - S$111.6 +10.90%
Shanghai - S$110 +9.10%
Jakarta - S$103.7 -4.3%
Bangalore - S$102.2 -9.7%
Bangkok - S$91.2 -10.70%