Adelaide’s hotel sector is experiencing a remarkable resurgence, fueled by a series of major festivals and sporting events drawing crowds from around the globe. This resurgence is a post-pandemic recovery and a dynamic transformation into a bustling hub of activity and economic prosperity.

From the Santos Tour Down Under in January to the Adelaide Festival and Fringe events in March, Adelaide has demonstrated a robust increase in hotel occupancy and revenue per available room (RevPAR). The Santos Tour alone, spanning January 12-21, catapulted hotel occupancy to 78.1%, with RevPAR surging by 11.4% year-over-year to AUD179.18. This trend continued through the Adelaide Festival (March 1-17) and the Adelaide Fringe, pushing occupancy up to 82.5%, a 6% increase from the previous year, and lifting RevPAR to AUD191.25, marking a 6.6% rise.

Moreover, the AFL Gather Round, although in its sophomore year and experiencing a slight dip in occupancy, saw a significant leap in average daily rates (ADR), skyrocketing by 15% to AUD372.77. This increase represents a staggering 145% boost compared to the typical rates observed from Thursday to Sunday in April.

Matthew Burke, STR’s regional director for the Pacific, Japan & Central South Asia, highlighted these events’ significant role in enhancing Adelaide’s reputation as Australia’s “Festival State.” He noted, “Adelaide continues solidifying its reputation as Australia’s Festival State, showcasing the power of homegrown events to drive significant tourism and economic benefits. Building upon the success of previous years, the market’s major festivals and sporting events have become post-pandemic highlights, attracting domestic and international visitors, ultimately boosting hotel performance.”

Looking forward, the horizon is equally promising. The LIV Golf event, set to tee off for its second year from April 26-28, has already matched the previous year’s booking pace with impressive figures. Additionally, the Asia Pacific Hotel Industry Conference and Exhibition, scheduled for May 1-2, 2024, is projecting an occupancy rate of 58% for both nights.

Adelaide’s strategic emphasis on cultivating a rich calendar of events enhances its cultural landscape and significantly bolsters its hotel industry, creating a ripple effect across the local economy. These events promise entertainment and are pivotal in sustaining and escalating the city’s tourism and hospitality sectors.

For more insights into the booming real estate and hotel market, visit the CoStar Group at www.costargroup.com.

Written by: Charmaine Lu

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