Record occupancy for Sydney, Sept ‘16
STR’s September 2016 Pipeline Report shows 582,271 rooms in 2,555 projects Under Contract in the Asia Pacific region and preliminary data indicates a record occupancy level for Sydney.
The total represents a 4.6% increase in rooms Under Contract compared with September 2015. Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The region reported 238,829 rooms in 1,018 projects In Construction for the month, which is a 5.5% decrease in year-over-year comparisons.
Among Chain Scale segments, the Upscale segment accounted for the largest portion of rooms Under Contract (26.1% with 152,039 rooms) and In Construction (27.0% with 64,536 rooms).
The Upper Upscale segment was the only other segment to account for 20.0% or more rooms Under Contract (25.4% with 147,788 rooms) or In Construction (25.3% with 60,511 rooms).
Asia Pacific pipeline by Chain Scale (number of rooms):
| Chain Scale | Existing Supply | In Construction | Under Contract |
| Luxury | 197,738 | 40,770 | 84,359 |
| Upper Upscale | 327,874 | 60,511 | 147,788 |
| Upscale | 401,940 | 64,536 | 152,039 |
| Upper Midscale | 327,127 | 28,938 | 99,546 |
| Midscale | 269,394 | 10,729 | 35,483 |
| Economy | 677,295 | 2,463 | 5,071 |
| Unaffiliated | 2,042,612 | 30,882 | 57,985 |
| Total | 4,243,980 | 238,829 | 582,271 |
Source: STR / report as of September 2016, activity reported through August 2016
Under Contract data includes those projects in the In Construction, Final Planning and Planning stages
Based on daily data from September, Sydney reported the following in year-over-year comparisons:
- increases in supply (+4.4%) and demand (+5.0%);
- a 0.6% increase in occupancy to 86.0%;
- a 6.2% increase in average daily rate (ADR) to AUD206.60; and
- a 6.8% increase in revenue per available room (RevPAR) to AUD177.60.
Last September’s 85.7% occupancy level was the highest for a September in Sydney dating back to 1995—the first year in STR’s historical database for the market. In addition, the AUD206.60 absolute ADR level for September 2016 would be the highest for a September in Sydney outside of the 2000 Summer Olympics (AUD313.99).
STR analysts note that the month’s performance was especially strong considering the market’s supply growth.
AccomNews is not affiliated with any government agency, body or political party. We are an independently owned, family-operated magazine.