Can't believe that we haven't seen more interest in this little...

Can't believe that we haven't seen more interest in this little gem with the industry recovering strongly. No dilution and no forced sales means that earnings will not suffer like many property groups going forward.

Article from today's Australian:

http://www.theaustralian.com.au/business/property/hotel-business-revving-up-smith-travel-research-global/story-e6frg9gx-1225853767159


Hotel business revving up: Smith Travel Research Global

ROOM rates are set to rise this year as hotel trading conditions improve and demand stabilises.

That outlook was revealed in a new report by industry research firm Smith Travel Research Global, which showed a marked improvement in hotel trading conditions across Australia during February.

Excluding Perth, occupancy levels increased in all 10 major markets, resulting in revenue per available room (RevPAR) growth for most of the major markets. RevPAR is a key performance measure calculated by multiplying the average daily room rate by the occupancy rate.

Craig Collins, managing director of Jones Lang LaSalle Hotels, said the strong occupancy levels showed that the industry was heading back to a pre-global financial crisis trading level.

"While rates still reflect a discounted or high-volume approach to pricing, this is likely to moderate through 2010 in line with the improving domestic and global economic outlook."

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Major events such as the Gay & Lesbian Mardi Gras and the Ultimate Fighting Championship bolstered hotel trade in Sydney, with occupancy and average daily rates (ADR) increasing by 12.2 per cent and 8.3 per cent respectively over the corresponding period last year, making it the best performer in the month.

This combined growth saw RevPAR rise 21.4 per cent to $209 compared with the same month last year, the report said.

Canberra experienced the highest occupancy jump in February among all capital cities -- up 14.4 per cent, thanks to an influx of visitors to the Masterpieces from Paris exhibition at the National Gallery of Australia.

That saw the RevPAR increase 12 per cent to $146.

STR Global said Adelaide experienced a 3.7 per cent improvement, while Brisbane's occupancy rate jumped 9 per cent to 84 per cent, with a slight increase in room rates. RevPAR in Melbourne increased 4.3 per cent to $152.