STR’s preliminary October 2016 data for Melbourne, Australia, indicates solid performance despite a decline in year-over-year comparisons.Based on daily data from October, Melbourne reported the following:
- increases in supply (+3.2%) and demand (+1.5%);
- a 1.7% decrease in occupancy to 87.3%;
- a 0.7% increase in average daily rate (ADR) to AUD206.45; and
- a 1.1% decrease in revenue per available room (RevPAR) to AUD180.22.
STR analysts attribute the occupancy decline to the increase in supply. Meanwhile, the market benefitted from hosting events such as the Melbourne Festival (6-23 October), the Melbourne Marathon (16 October) and the 23rd World Congress on Intelligent Transport Systems and Services (10-14 October). The World Congress event pushed occupancy above 90.0% for three consecutive days.
STR will release actual October 2016 results later this month. The August edition of STR’s Market Forecast is now available.