For hotels across NSW some interesting information can be found when you analyse the average net per machine per day for each LGA (local government area) for the year ending June 2015. Among the top line nuggets are:
- Inside the Sydney area only Leichhardt achieves on average less than $200 per machine per day in net. All other LGAs in Sydney achieve above $200 net per machine per day
- Except for the Wyong LGA, no other LGA outside of Sydney sees an average above $200 per machine per day in net.
*Note: Hover over map and click for enlarged image or download PDF link:Sydney LGA’s by average $ Net per Machine per Day.
- Most of the LGA’s with the highest average net per machine per day are in the area bounded by the M2, M7 and M4.
- The majority of LGA’s where the average is between $300-$400 net per machine per day are around or south of the “Parramatta Rd Divide”.
- The majority of LGA’s where the average is between $200-$300 net per machine per day are in the Eastern Suburbs, North Shore and Northern Beaches. Lock out laws in Eastern Sydney have effected these results in recent years.
- The LGA’s around Hurtsville, Rockdale, Kogarah and across to Botany and Randwick is another hotspot for successful hotels and may be seeing a benefit from both the lockout laws as well as a demographic change in the area in recent years.
So what does it all mean? Using the LGA $Net Data to Benchmark your Hotel.
The chart below shows the level of competition within each LGA and also the average number of machines.
To use this as a benchmark, if you have more than the average number of machines for your LGA in your hotel, but aren’t achieving the average net per machine per day for your LGA, then maybe you have some work to do. For example, if your hotel is in Fairfield and you have over 27 machines, but aren’t achieving $686 net per machine per day you could look at options for a change.
*Note: Hover over table and click for enlarged image or download PDF Hotel Annual LGA June 15 PUBLIC.
- It is important to note that there is a correlation between the LGA’s with the most successful hotels on average net also having the highest average number of machines in the hotels. You need to be realistic: if your hotel has only 10 machines in an area where the average is 28 machines you won’t be at the top of the ranking tables that are commonly used in hotels, as they are based on total turnover. By using a “net per machine” benchmark such as the one above, it will be a better tool to use when trying to work out what to adjust.
- There is no obvious correlation between success and the number of hotels in each LGA.
- Obviously every hotel is different and the results will be affected by many different things such as other hotels in the area changing their gaming room, gaming machines or service levels. Some hotels give away incentives to get players in that also has a cost, such as a $10 steak deal, but this doesn’t show up in the gaming results data. Make sure you at least know what your competitors offer.
If you decide your hotel is a little behind, there are lots of options for improvement.
One of the best places to go for great information is to talk to your gaming machine reps. They visit many hotels and can give you information on trends, promotions and improvements at other pubs which might give you some fresh ideas.
Raw Data sourced from “Hotel Annual LGA June 15 PUBLIC”, NSW Office of Liquor, Gaming and Racing. Purchased Aug 2015
Maps and Graphs designed by The Drop Network Pty Ltd and are subject to copyright– maps are intended to give general indicators of each LGA and only generally refer to a town or suburb’s specific geographic location.