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STR: Australia’s Hotels Regaining Occupancy With Restrictions Eased

Lockdowns in Sydney and Melbourne Pulled National Occupancy Down

Hotels in Sydney reported occupancy below 20% in early October but improved to 37% during the final Saturday of the month, according to STR, CoStar Group's hospitality analytics firm. (Getty Images)
Hotels in Sydney reported occupancy below 20% in early October but improved to 37% during the final Saturday of the month, according to STR, CoStar Group's hospitality analytics firm. (Getty Images)

With lengthy lockdowns ending and travel restrictions easing, Australia’s hotel industry has seen recent improvement in hotel occupancy levels, according to preliminary data from STR through October 31.

Australia had been one of the highest-performing countries in 2021 until lockdowns in Sydney and Melbourne pulled national occupancy down to as low as 25.9% on August 8, 2021. With those lockdowns lifted, the country reached as high as 51.1% occupancy on October 30 (Saturday).

“Lockdowns and state travel restrictions have made the past four months extremely difficult for the hotel industry,” said Matthew Burke, STR’s regional manager for the Pacific region. “However, a progressive approach to vaccinations and the easing of restrictions have led to an increase in travelers and hotel demand with leisure guests driving performance. Based on our forward-looking data, and from the experience of Australia’s first recovery, we will likely see that leisure demand dominate recovery for the remainder of 2021.”

Key, STR-defined markets in the country each reached their highest daily occupancy level on October 30 (Saturday). Victoria (56.9%) was the highest after being as low as 22.6% just 6 days prior. Sydney Surrounding improved occupancy to as high as 48.4% after an early October low point of 10.6%. Sydney was below 20.0% in early October but improved to 37.0% during the final Saturday of the month. Melbourne had been stuck in the mid-20% range but climbed to 33.5%.

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, visit str.com and costargroup.com.

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