The Second Australian Hotel Sentiment Survey reports the ongoing status of the accommodation sector, and seeks to highlight those factors underpinning current operational challenges. We have again gauged what outlook operators hold for performance levels into the immediate future, and probed what operational challenges and likely solutions that owners and operators of accommodations properties face.

Key Findings

Importantly, as the nation is now slowly and tentatively emerging from the lockdowns and isolation measures, this Survey reports on the likely journey ahead for the accommodation sector in Australia. Key findings of the survey include:

  • JobKeeper was by far the most adopted Government Stimulus Measure with 91% of all participating properties having utilised the scheme. 89% of accommodation properties in capital cities, 92% of regional properties and 94% of leisure market properties sought the JobKeeper package.
  • 80% of survey participants (that are currently operating) describe their operation as being "Cash Flow Negative", making it clear the accommodation sector in Australia is currently in a dire situation.
  • Given the current financial situation described above, it is not surprising that 50% of participants state that their current staffing levels are only 0%-25% of pre-COVID levels, with a further 20% at 26%-50% of pre-COVID levels.
  • Of the participating properties that classified themselves as being partially operational, on average only 27% of rooms are available for sale. This 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 an approximately 30% decline in ADR compared to budget. The result is that RevPAR could decline by up to 87% compared to budget, based on the data taken from survey responses.
  • Investment into new hygiene standards is a clear focus of accommodation providers with 74% of properties identifying this as a top-3 initiative.

About Horwath HTL

Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry.

For more information, please visit www.horwathhtl.com.

Stephanie Henley
Horwath