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Sydney’s hotel industry soared to historic highs this past New Year’s Eve, setting new benchmarks for average daily rates (ADR), revenue per available room (RevPAR), and occupancy. According to December’s preliminary data from CoStar, a global leader in real estate analytics, the city’s hospitality sector capitalized on festive demand to deliver stellar results.

Unmatched December Metrics

December 2024 proved to be a milestone month for Sydney hotels, with year-over-year metrics showcasing impressive growth:

Occupancy: 78.8% (+2.1%)
ADR: AUD 314.15 (+0.9%)
RevPAR: AUD 247.43 (+3.0%)

The surge culminated on New Year’s Eve, with an unprecedented daily ADR of AUD 854.38 and RevPAR hitting AUD 807.62. Occupancy also peaked at 94.5%, marking December’s highest level.

Spotlight on Key Events

The city’s iconic New Year’s Eve celebrations weren’t the only drawcard. December also saw significant boosts from large-scale events. The first night of Crowded House’s four-show series on December 4 drove occupancy to 93.5%, the second-highest for the month. Meanwhile, December 30—the night before New Year’s Eve—saw ADR and RevPAR climb to AUD 554.35 and AUD 482.35, respectively.

Positive Momentum Continues

Sydney’s strong performance appears to be no mere seasonal fluke. Forward STAR data for January 2025 indicates continued growth, with occupancy rates tracking six percentage points higher than in 2024 (54% vs. 48%). This upward trend stems from a broader base of steady demand rather than reliance on singular event spikes.

Industry Implications

The record-breaking figures underscore the resilience and allure of Sydney’s tourism and hospitality industries. Events such as New Year’s Eve and world-class performances and attractions continue to position Sydney as a premier destination for global travellers.

CoStar’s insights reflect the city’s current strength and serve as a blueprint for strategic planning in the hospitality sector. For more details on CoStar’s real estate intelligence and analytics, visit www.costargroup.com.

Key Takeaways

Sydney’s record-breaking hotel metrics demonstrate the city’s ability to leverage high-profile events to maximize revenue and occupancy. The sustained demand projected for early 2025 further solidifies its position as a top-tier global destination.