If anyone needed proof that major events still put heads in beds, Adelaide delivered it in May.
South Australia’s capital enjoyed a healthy boost in hotel revenue as thousands of tourism professionals, conference delegates and business travellers descended on the city, sending room rates soaring and giving hoteliers something to smile about beyond their morning coffee.
Fresh figures from CoStar show Adelaide’s hotel sector recorded a 6.6 per cent increase in Average Daily Rate (ADR) during May, pushing the average room rate to AUD198.79. Revenue Per Available Room (RevPAR) rose 5.7 per cent to AUD144.43.
Occupancy slipped slightly to 72.7 per cent, down 0.9 per cent on the same month last year, but that hardly dampened the mood.
The reason is simple. Hotels were able to charge more.
And when occupancy remains above 70 per cent while room rates climb sharply, most revenue managers are not reaching for the tissues.
The month’s clear standout was the Australian Tourism Exchange (ATE), Australia’s largest annual tourism trade marketplace, which transformed Adelaide into a bustling meeting ground for tourism operators, airlines, wholesalers, destinations and buyers from around the globe.
On 13 May, the city produced its strongest hotel performance of the month.
Occupancy reached 88.3 per cent. Average room rates climbed to AUD243.62, while RevPAR surged to AUD215.09.
For hotel operators, those are the sort of numbers that make spreadsheets look surprisingly attractive.
The PRECI Conference, which ran across the same period, added further momentum, creating a rare double-hit of demand that filled hotel rooms across the city.
The night before ATE’s peak day was nearly as strong.
Occupancy reached 87.4 per cent, ADR hit AUD239.85, and RevPAR climbed to AUD209.60.
In fact, those two nights were the only occasions during the month when RevPAR exceeded the AUD200 mark, underscoring the enormous influence major business events continue to have on Adelaide’s visitor economy.
The city’s performance also comes as Adelaide prepares for a significant influx of new hotel rooms.
That presents both opportunity and risk.
More accommodation means more choice for visitors and greater capacity to host large-scale events. It also means demand must continue growing if operators are to maintain strong occupancy levels.
Matthew Burke, Regional Director at STR, believes that the balancing act is already beginning.
“Demand grew year over year, but occupancy came in lower as the market absorbed an additional 1.6% of supply,” Burke said.
“The market is expected to see future occupancy declines as a wave of new supply opens across the city. It will take time for demand to catch up.”
That warning will not surprise many Adelaide hoteliers.
The city has become one of Australia’s most active hotel development markets, with investors betting heavily on continued tourism growth, major events and increased interstate and international visitation.
The challenge is now ensuring that visitors keep arriving as quickly as the cranes disappear from the skyline.
For the moment, however, Adelaide’s event calendar appears to be doing exactly what it was designed to do, bringing visitors, filling rooms and keeping the cash registers ringing.
As the numbers from May clearly demonstrate, when Adelaide hosts the tourism industry, the tourism industry returns the favour.
For more information, visit https://www.costargroup.com.
By: Soo James – © 2026.
Read Time: 2 Minutes.
About the Author.
There’s nothing rehearsed about Soo James, and that’s precisely the point. Malaysian by heritage, Sydney-schooled, she arrived at UNSW to study Arts, then took a left turn into IT, not out of ambition but out of curiosity. Somewhere among systems and schedules, she worked out what really held her attention: people, language, and the quiet spaces between them.
Writing followed naturally. Travel and lifestyle gave her room to observe, to listen, to notice the details others rush past. Soo writes the way good travellers move, watching the room before admiring the view, catching the gesture before chasing the headline.
At Global Travel Media, her stories don’t shout or sell. They linger. They slow you down, open a door, and gently suggest there’s more to see if you’re willing to look.
