Preliminary monthly hotel data for Sydney indicates continued performance declines, resulting primarily from an overabundance of new supply.
STR’s preliminary September 2018 data, based on daily data from September, reports the following in year-over-year comparisons:
- Supply: +5.7%
- Demand: +3.9%
- Occupancy: -1.7% to 82.8%
- Average daily rate (ADR): -0.8% to AUD211.38
- Revenue per available room (RevPAR): -2.5% to AUD174.95
According to STR analysts, the overall performance decline is primarily the result of new supply.
STR noted that the preliminarily reported RevPAR fall of 2.5% was driven by a sixth consecutive month of supply growth of more than 5% (+5.7%), outpacing demand growth (+3.9%). With subsequent occupancy declines, operators have lowered rates.
On a positive note, solid demand growth kept occupancy above 80% and the 10-year average in the market.
Edited by Peter Needham
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