Development opportunities are strong as Choice Hotels Asia Pacific continues to outpace market RevPAR in Q3
Leading hotel group Choice Hotels Asia Pacific has reported strong RevPAR growth across its Australian and New Zealand hotels in the third quarter of 2022 compared to pre-pandemic 2019 values.
Australian figures for revenue per available room (RevPAR) in Q3 were 45 percent higher than the same period in 2019, with average daily rates (ADR) up 26 percent on 2019 rates. Australian hotels within the group outperformed the comparable market segment RevPAR by almost 30 percent, and hotels using the groups revenue management service outperformed the market by almost 45 percent.
New Zealand Q3 RevPAR was up 18 percent on the same period in 2019, with ADRs for the quarter up 14 percent. New Zealand hotels outperformed the comparable market segment RevPAR by 23 percent, with revenue managed hotels seeing a 154 percent RevPAR bonus on similar hotels in Q3.
Choice Hotels Asia Pacific CEO Trent Fraser said putting energy into revenue management and monitoring market conditions continued to pay off for participating hotels, and the results in New Zealand showed how great a difference revenue management made in tight market conditions.
“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. We’ve seen staffing shortages across the hospitality industry
which has meant many owners are hands on in their businesses, and now we 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,” Mr Fraser said.
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, driving repeat business for hotels and benefits for members.
“Driving bookings is a key driver right now, and we are proud to see payoff through the ChoiceHotels.com website and our Choice Privileges App. 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,” Mr Fraser said.
Being part of Choice Hotels Asia Pacific delivers key benefits to hotel owners and investors and Mr Fraser said the business model working with hotel management groups has become a popular option for investors and owners alike who are eager to build their hotel portfolios but are not actively engaged in the day-to-day operations.
“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. Investors get the global brand recognition, regional and global marketing initiatives, and a solid loyalty program, alongside professional management of day-to-day operations,” he said.
Mr Fraser said as hotel owners emerge from recovery mode in 2023 and face new economic challenges, optimising their business models and finding the best opportunities on costs will become front of mind in what will continue to be a tight segment for some time.