STR’s preliminary April 2017 data for Melbourne has shown performance consistent with significant supply growth.
Based on daily data from April, Melbourne reported the following in year-over-year comparisons: Supply up 3.9%; Demand up 1.2%; Occupancy down 2.6% to 80.9%; Average daily rate (ADR) up 0.6% to AUD$176.23 and Revenue per available room (RevPAR) down 2.0% to AUD$142.51.
April marked the second month in a row with supply growth nearing 4% in Melbourne.
STR analysts said they believe this is the reason “behind the lowest occupancy percentage in the market since June 2016 and the lowest ADR level since August 2016”.
“Additionally, year-over-year results were unfavorably affected by the Easter calendar shift from March 2016 to April 2017… The specific impact was seen in a pair of corporate travel weeks that were unaffected last April,” the STR analysts said.
STR will release actual April 2017 results later this month. The May edition of STR’s Market Forecast also will be available in the coming weeks.