Melbourne room rates are breaking records

December's room rates reached record-highs despite occupancy below 2019 levels & Jan 2023 already looking good

AccomNews Thursday, January 12, 2023

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Excellent news for Melbourne’s hotel industry. It recorded its highest monthly average daily rate (ADR) on record, according to preliminary December 2022 data from STR.

The ADR and RevPAR levels surpassed the pre-pandemic comparables by 27.2 percent and 9.1 percent respectively, despite occupancy remaining below the 2019 comparable (-14.3 percent).

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Daily data shows the month’s highest occupancy level was recorded on Saturday, 10 December (90.0 percent), with the market’s daily occupancy levels remaining above the 60.0 percent mark throughout the first half of the month. The highest daily ADR and RevPAR levels were reported on New Year’s Eve, at AUD 372.23 and AUD 300, respectively.

December 2022 data from STR.

Occupancy: 67.7 percent
Average daily rate (ADR): AUD236.53
Revenue per available room (RevPAR): AUD160.22

Melbourne’s occupancy on the books for January 2023 (47 percent as of 2 January) is already higher than actualized January 2022 occupancy (42 percent). The removal of COVID restrictions in Victoria, along with the Australian Open (Grand Slam tennis) are the primary drivers of performance over last year.

More of STR’s analysis can be found HERE

About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. 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. For more information, please visit str.com and costargroup.com.