Sydney hotel data cools

SYDNEY’S hotel sector has shown further signs of cooling, with a second consecutive month of declining rates and occupancies posted in Jul.

After a long stretch of tight availability and strong rates, the latest preliminary data from STR shows hotel performance in the harbour city has been hit by significant growth in supply.

Occupancy rates were at their lowest levels for a Jul period since 2009, averaging 80.5%, or seven percentage points down on the same month last year.

Supply was 5.1% higher as a result of a string of new hotel projects and expansions coming online, while demand was down by 2.2%

Average daily rates were down 6.9% on Jul 2017 to reach $194.05, while revenue per available room (RevPAR) was down 13.4% to $156.12.

STR said average daily rates in the NSW capital were at their lowest levels for any month since Sep 2014.

It attributed the slump in demand partly to lower levels of significant events being held in Sydney during Jul, which also impacted on rates.

In Jul last year, the city was boosted by two Arsenal football matches played during the team’s international tour.

In the past year Sydney has welcomed several major new additions to its hotel stock, ending a long period in which no major developments were unveiled.

Additions have included the 590-room Sofitel Sydney Darling Harbour which opened in Oct, while other projects are due to open in coming years including a W Sydney at Darling Harbour and Crown Sydney at Barangaroo.