Tuesday, February 28, 2012

One of the challenges that is Perth accommodation

Everyone (in the hotel industry) knows that Perth is Boomtown, USA right now and that the city is essentially filling midweek every week. If you don't get in a week or two early you will struggle to get availability and rates will be well over $400/night for even standard 4 star hotels.

This leads to the other challenge with Perth hotels ... and that is managing expectations. When you are paying over $300/night for a hotel room you have certain expectations about the standard you'll receive for that cost. In Sydney or Melbourne that will get you a 5 star hotel but in Perth during their peak times this is definitely not the case.

So the problem comes that not only are people having to pay far more than they're used to but they're not receiving the quality of accommodation they'd expect. The challenge for the Perth hotels is to justify the rates they charge other than just by saying "because we can". As you can see from the article below, Perth rooms are some of the oldest in the country but because they're so full so often the hotels don't get the chance to spend money refurbishing them and keeping them up to date.

The gap between the value of a hotel room in Perth and the price that is charged to the traveller has become so wide that we hear numerous complaints that even the decent hotels aren't up to standard. From what I've seen many of the hotels are fine (older but still ok), but when you're paying an arm and a leg for them its understandable that people will leave disappointed.

Old age looms
over hotel rooms

More than 40,000 of Australia’s
hotel rooms are aged 20 years
plus, posing a considerable
challenge for the industry over the
coming decade, new research has

Jones Lang LaSalle Hotels’
research revealed that Australia’s
accommodation product had aged
significantly with an estimated
average age of 10 to 14 years across
the country.

Of the seven state capitals,
Darwin had the newest rooms,
aged between five and nine
years, while Perth, Canberra and
Hobart had the oldest rooms, aged
between 15 and 19 years.

The average was skewed slightly
by newer serviced apartments,
while hotel rooms were often far

“It is generally accepted that the
sustainable life for a real estate
asset is around 30 to 40 years
before extensive refurbishment
and replacement works are
required,” the report said.

“A high proportion of rooms
will therefore require major
works over the coming decade,”
it predicted, adding that
refurbishment costs escalated in
line with the age of product.

Technology would become a
major issue for many hotels, with
necessary infrastructure requiring
extensive refurbishment in older