STR’s preliminary May 2019 data for hotels in Sydney indicates performance consistent with supply outpacing demand.
Based on daily data from the month, Sydney reported the following in year-over-year comparisons:
- Supply: +1.8%
- Demand: +0.5%
- Occupancy: -1.3% to 81.5%
- Average daily rate (ADR): -3.2% to AUD207.72
- Revenue per available room (RevPAR): -4.4% to AUD169.23
May marked the seventh consecutive month of ADR declines for the market. STR analysts note that ADR continues to reflect softened demand in Sydney. The Airport precinct, which has experienced a large increase in hotel inventory over the past 18 months, has attracted more of that demand. Additionally, opening weekend of Vivid (24-25 May) resulted in a 1.7% decline in Sydney’s occupancy and a 7.8% decrease in the market’s ADR.
STR will release full May results later this month.