The Digest reports that Melbourne recorded the highest average daily rate (ADR) and revenue per available room (RevPAR) of all major markets during March quarter 2001.  Melbourne beat it�s traditional rival � Sydney in terms of ADR, which registered $147 versus Sydney�s $143 for the quarter.  It is a feat that has not occurred in recent history, according to Jones Lang LaSalle Hotels� records (commenced March quarter, 1989).  The city also outdid Sydney in terms of occupancy.

Melbourne�s strong performance is expected to soften, however, as a further 420 rooms enter the market during 2001.

�Increased competition in the Sydney market took its toll on both ADR and RevPAR� said Mr Geordie Clark, Executive Vice President, Jones Lang LaSalle Hotels.  �The good news for Sydney is that demand growth is virtually keeping pace with supply: room nights demanded in Sydney, March quarter 2001 showed an increase of 7.5% over the same period in 2000.  Growth in room nights available was only slightly higher, at 8.9%�. 

Queensland markets are showing signs of a long touted recovery, with Brisbane, Cairns and the Gold Coast markets all recording increases in RevPAR.  In Brisbane, performance was boosted by an 11.0% growth in occupancy and a 5.2% decrease in supply, the result of residential conversions.   �These results confirm that the Brisbane hotel market has rounded the corner and is on the upturn,� said Mr Mike Batchelor, Senior Vice President, Jones Lang LaSalle Hotels.

Hobart experienced a performance spike registering 83.9% occupancy, the highest of the nation�s major markets during March quarter 2001.  Discount airfares stimulated the extra demand, which have since returned to normal levels. 

Jones Lang LaSalle Hotels� Digest (Australia & New Zealand) provides an up-to-date analysis on the major hotel markets of the region.  The Digest includes an economic report card, tourism market examination, demand and supply analysis and investment profile.  It is updated regularly and is available on-line by subscription.