STR: Melbourne hotel business expected to speed up over Grand Prix weekend
LONDON -- After posting a 42.2% premium in average daily rate (ADR) during the Formula 1 2017 Australian Grand Prix, hotels in Melbourne are again expected to see a strong performance uplift around this year's event, according to STR.
Over Grand Prix weekend last year (18-20 March), Melbourne hotels recorded the following performance figures in comparison with the rest of March 2017:
- Occupancy: +5.6% to 93.3%
- Average daily rate (ADR): +42.2% to AUD278.70
- Revenue per available room (RevPAR): +50.1% to AUD259.91
While this marked a substantial rate premium for Melbourne, STR analysts noted that several select markets saw more substantial occupancy and ADR uplifts while hosting the event last year. Melbourne, however, typically operates at higher occupancy and ADR levels, so the performance increases during the Grand Prix are particularly noteworthy.
Recently in February 2018, Melbourne hotels recorded a 1.6% increase in occupancy to an actual level of 88.7% and a 0.8% increase in ADR to AUD189.17. As a result, RevPAR grew 2.5% to AUD167.72. STR analysts note that increased domestic travel has helped boost the market's hotel performance, as household income and spending are both up, according to the Australian Bureau of Statistics.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. 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.