Auckland & Sydney Hotel Performance - STR

Auckland experiences surge in demand while RevPAR in Sydney has now declined year over year for 14 consecutive months


Key points:

  • Auckland RevPAR: -10.2% to NZD139.18

  • Sydney RevPAR: -3.6% to AUD170.91

  • Asia Pacific RevPAR: +1.5% to US$66.15


May 2019 vs. May 2018


Auckland, New Zealand

  • Occupancy: -4.2% to 78.2%

  • ADR: -6.3% to NZD178.04

  • RevPAR: -10.2% to NZD139.18

The decline in occupancy has been attributed to a surge in new supply (+5.0%). STR noted that slower demand was also visible during the weekends, whereas corporate weekday business held steady. Minimal growth in demand for the month (+0.5%) was largely a result of lost group demand (10 or more rooms sold together) in comparison with last May. That May decline was a continuation of recent trends, as Auckland has reported a group demand decrease of 15.5% for the first five months of the year. Transient demand (less than 10 rooms sold together) rose 3.2% during the same time period.


Sydney

  • Occupancy: -0.9% to 81.8%

  • ADR: -2.7% to AUD208.98

  • RevPAR: -3.6% to AUD170.91

Performance decreases were largely attributed to supply (+1.8%), which outpaced growth in demand (+0.8%). STR noted that RevPAR in Sydney has now declined year over year for 14 consecutive months. STR and Tourism Economics’ latest forecast predicts a 2.6% decrease in RevPAR for 2019, after the metric dropped 1.0% in 2018.


Asia Pacific

  • Occupancy: +0.4% to 68.5%

  • ADR: +1.1% to US$96.53

  • RevPAR: +1.5% to US$66.15


STR will release full May results later this month.

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