Unravelling Concerning Occupancy Trends in Adelaide CBD

The Adelaide CBD is currently facing challenging occupancy statistics, painting a concerning picture for December 2023. With a Month-to-Date (MTD) occupancy of 57.6%, the area is poised to experience its worst December on record, surpassing the previous low of 61.7% in December 2003 (excluding COVID-impacted months). The recent decline in performance is stark, with a 24% reduction in occupancy since 2019 and a 12% drop since last year.

Adelaide CBD Occupancy performance from December 1998 - 2023

As we delve into the numbers, December 2023 seems destined to become the second-worst month in Adelaide CBD's occupancy history, trailing only behind January 2000 at 56.3%.

Adelaide and Adelaide CBD Occupancy from 1998 to 2023

Several factors contribute to this downturn, notably the absence of key events scheduled for December. The Adelaide Oval's traditional Test match cricket, now set for January, and the rescheduling of the Vailo 500 Street Race from December to November have played a role in this shift.

The impact of supply growth further intensifies the situation, with 8 properties adding 1,289 keys to the city since 2020. Looking ahead, hoteliers in Adelaide face continued challenges with the impending opening of the Mariott at the General Post Office building next year and the recently announced W, set to open its doors in 2026.

In light of these developments, stakeholders in Adelaide's hospitality sector must navigate a dynamic landscape, adapting strategies to address both short-term fluctuations and long-term supply concerns.

Stay tuned for further insights as we closely monitor the evolving hospitality landscape in Adelaide.