Perth has developed an unprecedented number of new hotels in the past five years, with 16 new hotels and almost 2,500 rooms constructed. However, Perth could have reached the end of its hotel boom, with no new construction starting in the past 12 months, a report released today by Tourism Council WA reveals.
"Since 2012, the number of hotel rooms in Perth has increased by 37 per cent," Tourism Council WA CEO Evan Hall said.
"For every new hotel built, the case for the next hotel to begin construction lessens. In the past year, no hotel has moved from development approval to construction, indicating Perth could be reaching the end to its almost decade-long hotel boom."
Tourism Council WA's 2019 Perth Hotel Development Report shows that existing development approvals for future hotels are not progressing to the construction phase.
The increased room stock had been accompanied by a massive increase in airline seats and venue capacity - but demand needed to grow in order to meet the increased supply and maximise private investment of more than $1 billion in hotels, Mr Hall said.
"In order to drive demand for hotel rooms, the number of visitors must also increase accordingly," he said.
"Currently, demand is not growing as fast as rooms are coming online. Increasing marketing, securing big-name events to activate venues, and approving new attractions are crucial to driving demand."
The report shows Perth is expected to welcome a further 1,500 new hotel rooms by the end of 2020 at properties including the Ritz-Carlton Perth, Accor's yet-to-be-named Art Series branded hotel and DoubleTree by Hilton Perth Waterfront.
Click here to see the full report.
