STR: Melbourne hotels reached record-high room rates in December

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

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

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

Daily data shows the month’s highest occupancy level was recorded on Saturday, 10 December (90.0%), with the market’s daily occupancy levels remaining above the 60.0% mark throughout the first half of the month. The highest daily ADR and RevPAR levels were reported on New Year’s Eve, at AUD372.23 and AUD300, respectively.

Melbourne’s occupancy on the books for January 2023 (47% as of 2 January) is already higher than actualized January 2022 occupancy (42%). 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.