Worst occupancy nightmare but Melb showing signs of recovery

AccomNews Wednesday, January 27, 2021

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The newest STR data released this month, confirms what the sector already suspects, in 2020 the Australian accom industry suffered its worst performance on record.

Meanwhile preliminary STR data for Melbourne hotels in December shows that the city’s hotel industry reported its highest performance levels since early in the pandemic.

However, STR data also shows that Melbourne’s year-over-year declines remained significant in comparison with December 2019.

STR Data for Melbourne:

Occupancy: 40.9 percent (-48.3 percent)

Average daily rate (ADR): AUD149.90 (-19.4 percent)

Revenue per available room (RevPAR): AUD61.35 (-58.3 percent)

Each of the three key performance metrics were the highest in Melbourne since March. The market was helped by weekend leisure demand as the local economy began to reopen post-lockdown. When looking at daily data, the highest performance was seen on New Year’s Eve: occupancy (63.8 percent), ADR (AUD239.87) and RevPAR (AUD153.08).

Data showing a record-low performance in Australia during 2020, according to STR:

Occupancy: 44.7 percent (-39.4 percent)

ADR: AUD163.90 (-11.5 percent)

RevPAR: AUD73.32 (-46.4 percent)

The 2020 occupancy and RevPAR levels were the lowest for any year on record in Australia. However, after falling to its pandemic low point in April (occupancy: 19.8 percent), Australia reported continued performance improvement through the end of the year. In December, each of the three key performance metrics were the highest for the country since February: occupancy (52.8 percent), ADR (AUD189.50) and RevPAR (AUD99.98).

About STR
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces.