Australian Hotel Sentiment Survey from Horwath HTL

June is expected to be the poorest performing month with low occupancy levels and at a 30% decline in ADR compared to budget


Key points:

  • 91% of respondents adopting JobKeeper

  • 80% describe their properties as being “Cash Flow Negative”

  • RevPAR could decline by up to 87% compared to budget


The second Australian Hotel Sentiment Survey from Horwath HTL reported on the likely journey ahead for the accommodation sector in Australia.


Key findings of the survey include that JobKeeper was by far the most adopted Government Stimulus Measure with 91% of all participating properties having utilized the scheme, 89% of accommodation properties in capital cities, 92% of regional properties and 94% of leisure market properties seeking their JobKeeper package.


80% of survey participants that are currently operating describe their properties as being “Cash Flow Negative”, making it clear the accommodation sector in Australia is current in a dire situation.


50% of participants stated their current staffing levels are only 0%-25% of pre-Covid levels, with a further 20% at 26%-50% of pre-Covid levels.


An average of only 27% of rooms are available for sale of the participating properties partially operational. The percentage varies by location type with regional properties having on average 40% of inventory available for sale, capital city properties 26% and leisure properties the lowest at only 18% rooms operational.


June is expected to be the poorest performing month with low occupancy levels and at a 30% decline in ADR compared to budget. RevPAR could decline by up to 87% compared to budget.

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