Lower room rates stalled Melbourne’s performance growth in September
Melbourne’s hotel industry reported a decline in revenue per available room (RevPAR) for just the second time this year, according to September 2023 preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
Melbourne’s hotel industry reported a decline in revenue per available room (RevPAR) for just the second time this year, according to September 2023 preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
September 2023 (year-over-year % change):
- Occupancy: 65.4% (+1.4%)
- Average daily rate (ADR): AUD212.47 (-4.5%)
- Revenue per available room (RevPAR): AUD138.85 (-3.2%)
Even with occupancy growth, Melbourne ADR fell by more than 4.0% for the second time in three months. The market’s only other month this year with a RevPAR decline was April (1-3%), also due to lower room rates. Melbourne’s demand (+7.3%) is exceeding supply growth (+5.7%) and is enough to create contraction in room rates.
When looking at daily data, the market’s highest occupancy levels were seen on Saturday, 30 September (94.8%), the night of the AFL Grand Final 2023, closely followed by Friday 29 September (81.1%). Melbourne’s daily occupancy levels remained above the 50% mark throughout the month apart from two days.
Looking forward, occupancy on the books of 53% shows October occupancy tracking on par to the same time last year. For more information about the company and its products and services, please visit www.costargroup.com.