STR’s preliminary July 2018 data for hotels in Sydney, Australia, indicates performance affected by significant supply growth and less market events.
Based on daily data from July, Sydney reported the following in year-over-year comparisons:
• Supply: +5.1%
• Demand: -2.2%
• Occupancy: -7.0% to 80.5%
• Average daily rate (ADR): -6.9% to AUD$ 194.05
• Revenue per available room (RevPAR): -13.4% to AUD$ 156.120
July was the second consecutive month with year-over-year declines in each of the three key performance metrics. STR analysts note the absolute ADR level was the lowest for any month since September 2014, while absolute occupancy was the lowest for a July since 2009.
The drop in demand was partly due to fewer significant events during the month, which also translated into lower rates. For example, in July 2017, Arsenal played two matches in Sydney on its summer tour.
STR will release full July results later this month. The August edition of STR’s Market Forecast will be available later this month for Sydney and a host of other markets across the globe.