0800 263 339

Income and Expenses

Revenue per unit

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 31740 32671 28271 29601 38347 39968
  Sample 172 160 146 135 140 94
The revenue per unit for the March 2023 year saw the most notable rise over its previous year, showing considerably higher than pre-Covid results. At that time, some were suggesting that this may be a spike in revenue due to "revenge travel" and the like, and possibly not sustainable. So, it is encouraging to be able to report some further growth in the national average per unit revenue for the 2024 financial year. The financial year to March 2024 saw the first recording of a national average per unit revenue of just on $40,000 per annum plus GST. This increased revenue has the effect of suggesting that some cost categories appear to have reduced, at least as a percentage of revenue. This result is more likely affected by the direct costs not increasing as much as revenue has, however when measured on a per unit basis, these costs have increased. The online Reserve Bank Inflation Calculator suggests that room rates have kept up with inflation, even slightly ahead. We would observe though that operating costs have generally increased at a greater rate, with profit margins reducing in recent years.

Rent per unit

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 9270 9625 7868 9078 9412 9800
  Sample 133 121 113 101 107 73
With the exception of March 2021 reflecting Covid related discounts, rent per unit has remained reasonably level, with modest growth in recent years. We are currently seeing a higher than usual number of rent reviews taking place, with a number of lessors looking to “catch up”, so future results may reflect this.

Rent as a percentage of Revenue

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 28.40% 28.52% 27.24% 29.22% 23.77% 24.29%
  Sample 133 121 113 100 107 73
Rent as a percentage of revenue saw a considerable drop for the March 2023 year. Given that rent per unit surveyed did not actually drop, this will be due to revenue per unit increasing, while the rent remained at the same level pending rent reviews. We are aware that there has been more rent review activity than usual in the last couple of years, as lessors look to catch up after reasonably long periods of flat rental. 2024 shows an increase in rent as a percentage of revenue, which is notable given that revenue has itself increased. Often rent reviews are implemented part way through a financial year, so the full effects of reviewed/increased rents can take more than one financial year to be illustrated.

Rent to Profit Ratio

Profit calculated before payment of rental, then rental reported as percentage of that profit

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 48.65% 52.28% 49.82% 52.66% 42.75% 41.97%
  Sample 133 121 113 101 107 73
A similar result to the rent/revenue ratio where rents have not yet risen relative to increased revenue.

Energy Costs

Electricity and / or Gas - Diesel (Non Motor Vehicle)

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 3.48% 3.47% 3.52% 3.55% 3.15% 3.19%
  Sample 172 160 143 135 140 94
Apparent efficiency gains most likely reflecting revenue increasing more than costs.

OTA Commissions

Travel Agents – Booking Sites

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 3.90% 3.98% 3.00% 3.54% 4.26% 4.58%
  Sample 149 142 129 111 115 73
Despite increased revenues, OTA percentage still rising. We suspect that the OTA costs here are understated. This may be due to these commissions not being coded separately, where the operators simply show the revenue net of those commissions. Also, this expense may have been coded under advertising. The OTA costs in terms of total running costs however will be fully take account of, given that if revenue is reduced because of commissions, running costs as a percentage will be higher.

Promotion and Marketing

Advertising (including sponsorship), website and related costs, group commissions and marketing and franchise fees, (excluding OTA commissions)

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Media 0.94% 0.84% 0.67% 0.59% 0.41% 0.38%
  Sample 167 149 135 119 122 79
The reduction in general advertising costs would likely be due to the increase in OTA bookings and, the reliance on that platform for sourcing business. Many of the hard copy and reasonably expensive advertising medium of earlier years are no longer part of the equation.

Rates per unit

Includes: Water & Refuse Rates where applicable

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 899 905 936 953 1062 1203
  Sample 164 150 137 128 131 88
This would appear to reflect the general increases in local body rates.

Insurance per unit

Insurance. Including Land & Buildings – Liability – Business Interruption – Chattels

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 782 780 807 795 888 1034
  Sample 171 158 144 133 139 94
Reflecting generally increased insurance costs.

R&M and Replacements

Javascript is required to view this chart.
2019 2020 2021 2022 2023 2024
  Median 3.58% 3.32% 3.85% 3.61% 3.94% 3.74%
  Sample 166 147 127 103 81 93
This includes repairs, maintenance, replacements/renewals – assets under $500 – crockery, cutlery, linen. The overall percentage of revenue for this expense is less than we expected and we believe may be slightly understated. This could be due to payments into maintenance funds having not been treated as expenses, nor have reimbursement from such funds been treated as income. (Leases which actually operate such maintenance funds are in the minority, so the effect on the overall results should be limited.) Also of note is that upgrades which would be considered Capital Expenditure will not be recorded as an expense in the Profit and Loss Accounts.
Back to Top