Sydney hotel occupancy declines amid increased supply
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Sydney hotel occupancy declines amid increased supply
New data from STR has indicated a drop in Sydney hotel occupancy for the month of January, with revenues down almost seven per cent compared with the same time last year.
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DepositphotosCircular Quay in Sydney.
A mix of bushfires, smoke haze and coronavirus is believed to have stalled demand for Sydney hotels in January, with new data showing a decline of almost 7 per cent in revenues for the market compared with the same time last year.
STR's Preliminary January figures for hotels in Sydney indicate a subdued start to the year for the sector, highlighted by drops in occupancy (-4.9 per cent) and demand (-3.2 per cent).
The average daily rate also decreased by 2.1 per cent to $206.42, leading to a 6.8 per cent drop in revenue per available room.
January was the 25th consecutive month of occupancy declines for the market, which STR attributes to growth in supply (+1.7).
STR has forecast the demand to remain at lower levels, due to the travel ban on people from mainland China.
The new figures come after the Sydney Drive Regional submarket, which incorporates hotels within a two-hour drive of Greater Sydney, recorded a 29.5 per cent in revenue per available room in December.
STR will release full January results and a revised Sydney Centre forecast later this month.
Click here to view more STR research.
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