Hotels in Australia’s Gold Coast experienced a substantial performance uplift as host market for the 2018 Commonwealth Games, according to data from STR.
The Gold Coast’s hotel performance was largely driven by high rate premiums during the event (4-15 April). Average daily rate (ADR) came in at AUD347.38, which was a 76.7% increase over the same 12-day period in 2017. The market’s growth in revenue per available room (RevPAR) exceeded 100% most nights during the event, with the peak level occurring the night of the opening ceremony on 4 April (RevPAR: +205.4% to AUD294.26).
The spike in ADR and RevPAR occurred despite the fact that Gold Coast hotels did not register at-capacity occupancy levels. The market experienced its highest occupancy level (92.8%) on the night of the closing ceremony, and the average level during the event (86.6%) fell short of the average in Glasgow (95.7%). However, with different market sizes, the Gold Coast sold 99,466 more room nights.
“While it’s encouraging to see that Queensland hotels capitalized on the Commonwealth Games, the lasting legacy could have an even greater impact on the market’s future,” said Matthew Burke, STR’s Pacific manager. “As Southeast Queensland continues exploring the prospect of bidding to host the 2032 Olympics, the results of this year’s Commonwealth Games will likely play a big role in the ultimate decision.”
Compared with other recent host markets of the Commonwealth Games, Gold Coast hotels recorded the highest absolute RevPAR level during the event when measured in U.S. dollar constant currency.
Gold Coast, 2018: US$243.23
Glasgow, 2014: US$171.98
New Delhi, 2010: US$112.87
Melbourne, 2006: US$178.11
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.