Rates rebound in Melbourne, drop in Berlin, dip in Jeddah

Melbourne reported its best room rate performance during the pandemic, while performance in Jeddah declined marginally and fell further in Berlin, according to preliminary January data from STR.

The Australian Open helped drive room rates in Melbourne’s hotel industry to reach pandemic-era highs.

  • Occupancy: 40.8%
  • ADR: AU$204.21 (US$145.50)
  • RevPAR: AU$83.28 (UA$59.33)

The market’s absolute ADR level was its highest since November 2019, while the occupancy and RevPAR levels were marginally lower compared with the previous month.

January’s result was due to event-driven demand, as Melbourne performance is pushed more by domestic leisure travel and less by hotel quarantine contribution. Melbourne’s daily performance for the month peaked on January 22 (occupancy was 56.7%, ADR was AU$249.08/US$177.24 and RevPAR was AU$141.20/US$100.48), coinciding with the fourth round of the Australian Open.

Evan Walker Bridge along the Yarra River at Southbank Melbourne

Looking ahead, STR’s latest Forward STAR data shows Melbourne’s highest occupancy on the books on April 9 (54.1%), during the Australian F1 Grand Prix weekend.

Meanwhile, Jeddah’s hotel market reported slightly lower performance levels compared to the previous month.

  • Occupancy: 46.2%
  • ADR: SAR569.38 (US$151.62)
  • RevPAR: SAR263.05 (US$70.04)

Performance was lower than the previous month prior after the market hosted the Saudi Arabian Grand Prix in early December, which pushed monthly performance to an all-time high since September 2019. Despite the month-over-month decline, absolute occupancy and RevPAR fell in line with recent months.

In Berlin, performance declined compared to the previous months, amid tight COVID norms.

  • Occupancy: 28.2%
  • ADR: €75.85 (US$86.05)
  • RevPAR: €21.41 (US$24.29)

The occupancy level was the lowest in the market since June 2021, while ADR was the lowest since July 2021.

According to daily data, Berlin’s hotel occupancy came in at 38.7% on New Year’s Day, considerably lower than occupancy recorded on the same day in 2020 (75.3%) and 2019 (68.8%).