New report suggests bright future for Australian hotel market

According to the Hotel Futures 2014: A Review of the Revenue Performance of Major Australian Hotel Markets with Forecasts to 2022 report, Australia can expect to see a 5.5 per cent growth in accommodation with the majority of this growth driven by a solid 5 per cent increase in rate.

Richard Munro, Accommodation Association of Australia chief executive officer says the data "definitely makes you feel optimistic about trading into 2014".

"We know that rate has a very positive flow through effect on our margins and achieving this outcome is certainly a target the industry should get behind and back. Of course Australia is large with many states and jurisdictions, so inevitably not all properties will be performing at that level. With increased costs to run our businesses, rates must improve to keep pace," Munro stated in a recent message to the sector.

Munro added: "The approval of the Sydney Airport master plan for 2033 is a step in the right direction to improving access and capacity to our gateway city and we are encouraging all persuasions of governments to back further expansion across Australia to drive our industry, which in turn will drive employment."