STR’s preliminary March 2019 data for hotels in Sydney indicates lower performance.
Based on daily data from March, Sydney reported the following in year-over-year comparisons:
- Supply: +2.7%
- Demand: +1.3%
- Occupancy: -1.3% to 87.2%
- Average daily rate (ADR): -6.8% to AUD230.94
- Revenue per available room (RevPAR): -8.0% to AUD201.36
The absolute occupancy level would be the lowest for a March in Sydney since 2014. The decrease in ADR marks the first year-over-year decline in the metric for any March since 2009. STR analysts partially attribute the lower performance levels to a steady rise in supply and shifts in demand to lower average rate properties in submarkets of Sydney. Additionally, the year-over-year comparison was impacted by a high ADR event on 14-16 March 2018, when Sydney hosted the Australian-ASEAN Business Summit.
STR will release full March results later this month.
.jpg){kind=tracking}