Supply, Bushfires & Coronavirus Hurt Sydney Revenues

STR said January marked the 25th consecutive month of occupancy declines in Sydney


Key points:

  • Occupancy: -4.9% to 75.7%

  • ADR: -2.1% to $206

  • RevPAR: -6.8% to $156


STR released its preliminary data for January 2020 with Sydney reporting the following in year-over-year comparisons :


  • Supply: +1.7%

  • Demand: -3.2%

  • Occupancy: -4.9% to 75.7%

  • ADR: -2.1% to $206

  • RevPAR: -6.8% to $156


STR said January marked the 25th consecutive month of occupancy declines in the Sydney market, due primarily to supply growth.


STR also noted the influence of the bushfires and coronavirus negatively impacting demand - "The lack of significant demand growth is being exacerbated by the outbreak of novel coronavirus (COVID-19), as international arrivals from China make up a large part of inbound tourism in Australia".


China is Australia's largest overseas tourism market and with the 14 day travel ban on people from mainland China entering Australia coming into effect at the beginning of February, Australian hotels are expected to see a significant fall in revenues.


The travel ban by the Australian government followed the Chinese government banning tour groups from heading overseas at the end of January.

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