The price of staying at luxury hotels in Melbourne has reached a five-year high, with guests demonstrating a willingness to spend generously on new properties in the CBD. For example, the Ritz-Carlton Hotel in Lonsdale Street charges $700 per night, and the W Melbourne in Flinders Lane is priced at $515 per night. Tracy Atherton, the general manager of the upscale Melbourne Place hotel, highlighted that the demand for premium rooms with luxurious amenities has been particularly strong.
According to data from real estate analytics company CoStar, the average price of a hotel room in Melbourne in November rose to $234 per night, the highest rate recorded in five years. Prior to the COVID-19 pandemic, the average nightly price was $204. While the market has been slowly recovering since lockdowns, the occupancy rate remains at 78.8 percent, slightly below the peak of 86.6 percent seen in 2019. The surge in hotel prices can be attributed to the opening of several luxury properties in recent years, such as the Ritz-Carlton, Lanson Place, Le Meridien, and Melbourne Place.
Tracy Atherton, the general manager of the 191-room Melbourne Place, noted that luxury hotels in Melbourne offer a unique selling point that attracts discerning guests. She observed that premium rooms with exclusive features, such as separate living areas, balconies, freestanding baths, premium furnishings from brands like Jardan, and luxury bed linen from Frette, tend to be booked first. In contrast, the cheaper rooms are typically the last to be reserved. This preference for premium accommodations underscores the demand for high-end experiences and luxurious amenities among travelers visiting Melbourne.
The buoyant prices of hotel rooms in Melbourne indicate a strong appetite for luxury experiences and upscale accommodations among travelers in the city. The influx of new luxury hotels, each offering unique features and high-end facilities, has contributed to the rise in room rates. Guests are willing to pay a premium for properties like the Ritz-Carlton, W Melbourne, and Melbourne Place, which provide a combination of luxury amenities, exclusive services, and premium experiences. The recovery of the hotel market following the impact of the COVID-19 pandemic has also played a role in driving up prices, as travelers show a willingness to invest in high-quality accommodation options.
As the market for luxury hotels in Melbourne continues to thrive, hoteliers like Tracy Atherton are focused on meeting the demand for premium experiences and personalized service. The popularity of high-end rooms with luxurious amenities highlights the importance of delivering exceptional guest experiences that cater to the desires of upscale travelers. With occupancy rates gradually improving and room prices reaching a five-year high, luxury hotels in Melbourne are well positioned to capitalize on the growing demand for exclusive accommodations and top-notch services. By offering unique features, upscale amenities, and personalized touches, luxury hotels in the city are able to differentiate themselves in a competitive market and attract discerning guests seeking a luxurious stay.
