If Sydney hotels could talk, they’d probably still be catching their breath after August. A month of marathons, rugby roars, and visitors willing to part with small fortunes for a bed saw the city’s accommodation market break records faster than a Kenyan sprinter.
According to the bean counters at CoStar, who keep an eye on real estate and hospitality trends, Sydney chalked up its highest August average daily rate (ADR) and revenue per available room (RevPAR) on record. Translation: hoteliers did very nicely indeed.
Occupancy hit a healthy 84.4% (up 8.7% year-on-year), ADR climbed to a cool AUD 285.71 (+14.9%), and RevPAR leapt 24.9% to AUD 241.18. It was Sydney’s strongest August since 2018, when “Corona” was just a beer and tourists thought lockdown was a wrestling hold.
A Marathon Effort
The headline act? The Sydney Marathon. Forget your weekend jog in the park; this was the real deal. On Saturday, 30 August, as runners pounded across the Harbour Bridge, hotels across the city burst at the seams.
Occupancy that night hit a staggering 95.1%. The ADR? AUD 414.96. RevPAR? A blistering AUD 394.76. Clearly, Sydneysiders weren’t the only ones running long distances; credit cards were, too.
Matthew Burke, regional director at STR, couldn’t hide his delight:
“Sydney was elevated to seventh in the global marathon series, joining the likes of New York and London. Being the first in the southern hemisphere drew additional participation at professional and amateur levels.”
Translation: Sydney is now rubbing Lycra-clad shoulders with the world’s biggest running cities.
Lions Roar, Pints Pour
As if the marathon wasn’t enough, Sydney also hosted the final clash of the British and Irish Lions Tour on Saturday, 2 August. Rugby fans, many freshly arrived from Heathrow and Dublin, piled into hotels with the same enthusiasm they later showed for pubs.
The result? Occupancy surged to 92.8%, ADR hit AUD 390.18, and RevPAR came in at AUD 361.91. It was a try, conversion, and penalty goal for hoteliers all rolled into one.
Nights to Remember
Perhaps the most impressive stat? Apart from one quiet Sunday (24 August, when occupancy dipped to 67.5% clearly everyone needed a lie-in), Sydney’s hotels kept their occupancy north of 70% every night of the month. That’s consistency worthy of applause.
And it wasn’t luck. Burke explained:
“Sydney’s August performance was forecasted to be extremely positive. As early as March, forward occupancy on the books for August was tracking six points higher, and it grew further as the month approached.”
In other words, hoteliers could see the golden month coming from a mile off.
The Bigger Picture
August 2025 will go down as proof that big events equal big business. Sydney has rediscovered its magic formula: stage major spectacles and watch the tills ring.
With the marathon now locked into the global big-league series, the city has a jewel in its events crown. Add rugby, concerts, conferences, and the occasional political gabfest; you’ve got a recipe for a thriving hospitality sector.
It’s not just about full hotel beds, either. Restaurants, cafés, airlines, taxi drivers, and even souvenir shops selling “I ♥ Sydney” fridge magnets all got a slice.
Sydney may have once been an Olympic city, but judging by August’s results, it’s still a gold medallist in drawing the crowds and the cash.
By Octavia Koo
