The Melbourne hotel market show the average daily rate (ADR) increased 3.1 percent to $190.50 and revenue per available room (RevPAR) rose 1.4 percent to $153.91. However there was a 1.7 percent occupancy decline to 80.8 percent in December.

Based on daily data from December, Melbourne reported a 3.2 percent increase in supply and a 1.5 percent increase in demand, following year-over-year comparisons. STR analysts attribute the market’s monthly decline in occupancy to supply growth.

On New Year’s Eve, Melbourne reported occupancy above 90.0 percent and ADR in excess of $320.00. ADR for that Saturday night was roughly 4 percent higher than 31 December 2015, which fell on a Thursday.

During the week of the cricket Boxing Day Test, which kicked off on 26 December, the market recorded mostly flat RevPAR performance even with an increase in ADR. STR analysts anticipate that next December will show significantly stronger performance, with the English cricket team touring for the Ashes series between November 2017 and January 2018.

Data courtesy of STR
STR is a source for the hotel industry data benchmarking, analytics and marketplace insights providing solutions for their clients to compete within their markets. Founded in 1985, STR established itself as the leading hotel data provider in the U.S and in 2008 expanded internationally.

See also:

New Zealand Hotel Market Snapshot October 2016

JLL Report Into Sydney as a Hotel Destination