Summary of observations for the March 2024 financial year.
- Revenue per unit for the year to March 2023 saw the biggest rise over the previous year since survey results began in 2016, with a further increase in average revenue of just over four percent for 2024. Expenses such as energy costs and wages, appear as a lower percentage when in fact they have increased, just not as much as the revenue has increased.
- Some were questioning whether these new revenue levels were sustainable, citing “revenge travel” in the 2023 financial year, unlikely to be repeated. Overall results show continued growth to March 2024, touching on the $40,000 per unit plus GST annually for the first time.
- Growth in revenues from 2019 to 2024 slightly outstripped the rate of inflation for the same period, according to the Reserve Bank online inflation calculator.
- Rent shows as being quite steady over the last few financial years on a rent per unit basis, however dropping slightly as a percentage of revenue as that revenue rises. A high number of rent reviews being conducted currently, however it could take up to 2 years for these to filter through in these results, particularly if rent increases commence partway through the financial year.
- As more data is collected each year, which often includes financial accounts from previous years, the earlier samples also continue to grow. A quite noticeable jump in the number of 2023 samples in this report, compared to the March 2023 report.
- With the significant increase in building costs in recent years, the feasibility of constructing new accommodation is sorely tested. This could mean good times for the industry ahead as the supply and demand equation falls in favour of the motel operator.
Cleaners’ Wages
- As with any statistical survey, records will include extreme examples. For instance a smaller leasehold business with energetic operators in many cases may not employ any cleaners. On the other hand, a well capitalised freehold going concern operator with little or no debt, paying lots of tax, in many cases may not contribute to the cleaning at all. Overall, the results of the survey are consistent with our observations over time.
- Because minders/managers wages are often not separated, we are unable to include the minders category in the survey and such records are excluded. Where cleaners’ wages are reported on, the percentage will be accurate based on the number of samples surveyed, however total overheads will be understated by the quantum of minders fees.