In Brief: Adelaide hotels posted higher room rates and revenue in May, boosted by major events despite a slight drop in occupancy.
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Major Conferences Drive Adelaide Hotel Performance Gains in May – Image Credit Unsplash
Adelaide hotels recorded a 6.6% year-over-year increase in average daily rate (ADR) to AUD198.79 and a 5.7% rise in revenue per available room (RevPAR) to AUD144.43 in May, according to preliminary data from CoStar.
Performance peaked during the Australian Tourism Exchange on May 13, when occupancy reached 88.3%, ADR was AUD243.62, and RevPAR hit AUD215.09. The PRECI conference, held on the same dates, also contributed to these results. The night before, hotels reported the month’s second-highest performance, with occupancy at 87.4%, ADR at AUD239.85, and RevPAR at AUD209.60. These were the only two nights in May when RevPAR exceeded AUD200.
Overall May occupancy declined by 0.9% year over year to 72.7%, as the market absorbed a 1.6% increase in hotel supply. Demand grew, but occupancy was lower due to the additional rooms. The market is expected to see further occupancy declines as more new supply opens across the city, with demand expected to take time to catch up.
