STR’s preliminary January 2019 data for hotels in Sydney indicates lower occupancy and room rates influenced by supply growth.
Based on daily data from January, Sydney reported the following in year-over-year comparisons:
- Supply: +2.7%
- Demand: +1.4%
- Occupancy: -1.3% to 79.5%
- Average daily rate (ADR): -4.1% to AUD210.81
- Revenue per available room (RevPAR): -5.3% to AUD167.68
The absolute occupancy level would be the lowest for a January in Sydney since 2014. STR analysts cite supply growth as the reason for lower occupancy levels and pressure on hotelier pricing power. New Year’s Day was the top performer in January with RevPAR close to AUD320. The market set a New Year’s Eve RevPAR record (AUD617.71) the night before.
STR will release full January results later this month.
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