Navigating Trends: Adelaide's Hotel Occupancy Unveiled

Unravelling Insights from June 2023 and the Post-COVID Shift

In the wake of unprecedented changes in Adelaide's hospitality landscape, the hotel occupancy figures for June 2023 have sent ripples through the industry. At 62.7%, this marks the lowest since June 2005, and the 8th lowest since the initiation of STR records in 1998, excluding months affected by COVID-19. A red flag for investors, this statistic paints a compelling narrative of the challenges facing the hospitality sector amid significant supply growth over the past five years.

Delving into the Numbers

It becomes even more intriguing when we dissect the historical occupancy performance of the Adelaide Surrounding Submarket versus the broader Adelaide Market. From January 2010 to January 2020, the Adelaide Surrounding submarket outpaced the Adelaide market in occupancy for only 18 months. However, a seismic shift has occurred since the emergence from the Omicron wave in March 2022. In the subsequent 16 months, the Adelaide Surrounding submarket has consistently boasted higher occupancy than the Adelaide market, marking a remarkable and sustained post-COVID market shift.

Below you will find a graph illustrating the historical occupancy figures for both Adelaide and the Adelaide Surrounding Submarket. This visual representation tells a story of industry dynamics, capturing the fluctuations, trends, and the recent paradigm shift in post-pandemic times.

Adelaide Market vs Adelaide Surrounding Submarket Occupancy Jan 1998 - Jul 2023

I've also attached a graph of the historical performance for the month of June for the Adelaide and Adelaide Surrounding Submarket going back to 1998. This gives an interesting insight into how June as a month is trending and the remarkable post pandemic turnaround in performance between the CBD and the suburbs.

Adelaide Market vs Adelaide Surrounding Submarket June Occupancy 1998 - 2023

As we navigate these trends, it is crucial for industry stakeholders, investors, and decision-makers to glean insights from the data. The blog graph serves as a compass, guiding us through the evolving landscape of Adelaide's hospitality industry.