Choice Hotels Asia Pacific has reported strong growth for revenue per available room across its Australian and New Zealand hotels.
Figures from the third quarter of 2022 compared well to pre-pandemic 2019 values.
Revenue per available room (RevPAR) in Q3 were 45 percent higher than the same period in 2019. Average daily rates (ADR) also compared favourably, up 26 percent on 2019 rates.
The figures showed hotels in Australia outperformed the comparable market segment RevPAR by almost 30 percent, while in New Zealand Q3 RevPAR was up 18 percent.
Choice Hotels Asia Pacific CEO Trent Fraser said “The current economic conditions are creating a perfect storm for a pure-play franchise group like Choice Hotels Asia Pacific to really deliver for hotels in the group and attract new businesses,” he said.
“Small business owners had a tough time through the pandemic, which was followed by an incredibly busy winter rebound.”
He said owners are stepping in to fill staff shortages and now face inflationary pressure leading into 2023.
“As these pressures impact hotel businesses, it will open opportunities for engagement with us, with particular interest in revenue management and driving profitability, driving bookings, distribution and procurement savings,” Fraser said.
Online bookings are key
Direct online bookings have boomed in 2022, with Q3 bookings through ChoiceHotels.com and the Choice Hotels App up 132 percent on the same period in 2019. The Choice Privileges loyalty program is nearing 520,000 members, across Australia and New Zealand.
Fraser said the hotel website and its loyalty app have helped drive online bookings.
“These channels have broken previous year’s direct online booking records and it’s exciting to see our investment in these technologies and continued local and regional marketing efforts delivering room nights for our hotels,” Fraser said.
Fraser said the business model working with hotel management groups was a success for both investors and owners.
“Our tried and tested model with hotel management groups is attracting new opportunities. We recently opened our fourth property with 1834 with Quality Apartments Melbourne Central,” he said.
Fraser said optimising business models and shrinking costs will become crucial in a challenging marketplace.
