One of the biggest names in international tourism and hotels is eyeing off further expansion in WA after a stronger-than-expected launch of a new property in the State’s south-west.
Hilton’s Garden Inn in Busselton opened on December 29 and will finish its first month with an 80 per cent occupancy rate, said head of Australasia Paul Hutton — something he says he’s not seen before in his 40-year career.
With the Busselton opening, Hilton now has five properties across WA: two Hilton Doubletrees in Elizabeth Quay and Northbridge, Parmelia in the CBD and the Garden Inn in Albany. Mr Hutton said more could be on the way, but was tight-lipped about any locations in its sights.
“We’re very happy with WA … and happily surprised with Busselton,” he told The West Australian from Busselton, where he said his new hotel was already half-booked out for February.
“There’s no question we’re looking at exploring (WA options) … with five hotels here now, that means you have scale.”
Last year’s Australian exclusive concert of Coldplay had attracted tourists to Perth from south-east Asia, who, rather than east coasters staying just one night, came for at least four nights to a week, with strong demand on its city hotels.
Mr Hutton said demand in 2023 had been stronger than expected — and stronger than 2022, which in turn had been better than 2019.
“Now the the real question is what’s really happening in 2024,” he said. “We’ve tempered our expectations, it’s not possible to have 20 per cent growth any more but we are in the business of growth.
“Growth will be more measured this year.”
Mr Hutton said the impact of the return of Chinese tourism was hard to gauge given average room rates were higher than 2019, the last time many Chinese residents had been able to travel, and there was now a backlog for visa processing and passport applications.
“Does that mean a more well-heeled tourist?” he said, adding many looked for brands they trusted, which could help draw new visitation to Busselton given new direct flights from Melbourne, and from March, Sydney.
“The plane was not full of FIFO workers and fluro, it was grey nomads, families and retirees — and only four people like me,” Mr Hutton said of his flight from Melbourne to Busselton. He expects the slightly shorter flight time from east coast capitals to Busselton compared to Perth to be appealing to bring additional visitors to WA.
Mr Hutton said more than 90 per cent of staff at the Busselton property were locals, with a handful more from Perth.
“We need to be successful in the local community,” he said, highlighting the need to attract locals to use its facilities. About 95 per cent of the hotel’s wine list was sourced in the region and its kitchen used predominantly local produce and cheeses.
“It’s really important. They like to see a large multinational come to town and be genuine about what they’re doing.”