The outlook is looking good for Sydney’s accommodation venues heading into the busy Summer months, with accommodation levels in August almost at capacity.
That was one message from Accommodation Australia NSW’s recent Hotel Market and Economic Outlook meeting, where 160 hotel managers and directors gathered at the Fullerton Hotel and were told the city had one of its strongest trading months in years.
“It’s pretty clear August was one of the strongest performing months of the year and we have high hopes for Summer,” AA NSW general manager Stacey McBride said.
“The city really has a positive vibe after events like the Lions Tour and the marathon – and with events ahead like the busy Christmas/ New Year period and then Mardi Gras hopes are high.”
STR account manager Joanne Cohen told the gathering ‘during the marathon period alone, hotels had one of Sydney’s strongest trading results on record with ADR up more than 50% and occupancy nearly 46% higher YOY.
“It’s an encouraging outlook for Sydney’s accommodation market, noting continued rises in occupancy and room rates, though at a steadier pace than earlier in the pandemic recovery,” she added.
“Occupancy patterns have normalised in Sydney, with five of seven days averaging above 80%. Weekends are strong and midweek corporate and group travel has rebounded, helping hotels lift average daily rates (ADR).”
Head of Travel and Tourism at Roy Morgan Adele Labine- Romain told the group international arrivals were up, but markets were changing with strong growth from South Korea, a “stabilising trend” from India but ongoing gaps in the traditional markets of China and New Zealand.
“Current travel trends show while the domestic market has softened, international recovery continues to strengthen,” she said.
“Over the past three months, international arrivals have reached 95% of pre-pandemic levels, helping to offset slower local demand,”
“Meanwhile, intrastate visitors remain a key driver for Sydney, accounting for more than half of all visitor nights and 44% of total visitor spend. Among international travellers, holidays now lead as the main purpose of travel (44%), surpassing visiting friends and relatives (34%), business (9%), and education (6%).”
