In addition to the high occupancy, ADR was Dubai’s highest for a September since 2017.

September 2023 (year-over-year % change):

• Occupancy: 77.6% (+10.0%)
• Average daily rate (ADR): AED457.21 (+2.7%)
• Revenue per available room (RevPAR): AED354.94 (+13.5%)

Daily data shows the highest occupancy levels during the last three days of the month, led by Friday, 29 September (93.1%) – The UAE’s public holiday marking Prophet Muhammad’s birthday.

Dubai’s occupancy remained above the 70.0% mark throughout the month with the exception of three days.

London hotel performance growth moderated in September

With the summer travel surge concluded, London’s hotel industry showed more normalized levels of growth, according to preliminary September 2023 data from CoStar. 

September 2023 (year-over-year % change):

• Occupancy: 84.3% (+3.1%)
• Average daily rate (ADR): GBP208.51 (+2.6%)
• Revenue per available room (RevPAR): GBP175.75 (+5.7%)

Measured against strong performance in September of 2022, the ADR and RevPAR increases were London’s lowest this year. The market’s occupancy increase was the second lowest of 2023, behind July (+2.0%). Regardless, 84.3% was London’s highest September occupancy since 2019

When looking at the daily data, London posted its highest occupancy levels during the Defence and Security Equipment International exhibition on Wednesday, 13 September and Tuesday, 12 September (at 94.6% and 94.2%, respectively).

The market’s daily occupancy levels remained above the 70.0% mark throughout the month apart from Sunday, 3 September (66.3%).

Lower room rates stalled Melbourne’s performance growth in September

Melbourne’s hotel industry reported a decline in revenue per available room (RevPAR) for just the second time this year.

September 2023 (year-over-year % change):

• Occupancy: 65.4% (+1.4%)
• Average daily rate (ADR): AUD212.47 (-4.5%)
• Revenue per available room (RevPAR): AUD138.85 (-3.2%)

Even with occupancy growth, Melbourne ADR fell by more than 4.0% for the second time in three months. The market’s only other month this year with a RevPAR decline was April (1-3%), also due to lower room rates. Melbourne’s demand (+7.3%) is exceeding supply growth (+5.7%) and is enough to create contraction in room rates.

When looking at daily data, the market’s highest occupancy levels were seen on Saturday, 30 September (94.8%), the night of the AFL Grand Final 2023, closely followed by Friday 29 September (81.1%). Melbourne’s daily occupancy levels remained above the 50% mark throughout the month apart from two days.

Looking forward, occupancy on the books of 53% shows October occupancy tracking on par to the same time last year.

CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. For more information about the company and its products and services, please visit www.costargroup.com