Occupancy rates for January 2017 were higher compared to January last year, up 2.2 percentage points (pp) to 49%. A 4.8% increase in demand contributed to the lift in occupancy rates. Available supply at the end of the month was 5,122, up by an extra 108 rooms - additional stock recently included in the scope of the survey.

Despite four consecutive months of positive growth in occupancy rates since supply increased significantly back in 2015, the year ending January 2017 results still reflect a decline in average annual occupancy rates (down -1.3pp to 68%) on the same period last year.

The increase in demand was most likely influenced by the 11% drop in the Average Daily Room Rates to $111 in January 2017, and now the lowest rates since this reporting began in 2010. The positive growth in both demand and occupancy rates did not extend, however, to the average revenue per available room (RevPAR) - which dropped by $4.00 (or -6.5%) to $54.

Daily Occupancy Rates throughout the month of January 2017 were consistently higher than in January 2016 for most days of the week. Saturdays and Sundays were also stronger that those experienced in January 2015. Daily Room Rates and RevPAR; however, were still lower in January 2017 compared to other years – again affected by the increase in available stock.

Room demand continues to follow the traditional seasonal pattern with smaller numbers during the off-peak months. Regardless of this yearly pattern, room demand in January has grown each year since 2015.

Even with the increase in available supply during the month, the increase in room demand has resulted in improved occupancy rates

The data in this report is sourced from STR and is collected from a sample of 24 hotels with 10 or more rooms in Darwin. Data is collected daily and collated to represent the industry. This sample represents 56% of the establishments in Darwin and 71% of the room supply.

Note: The total Darwin sample size increased in September 2015. Changes in data since September 2015 means that reports produced before September 2015 should not be compared to reports from September 2015 onwards. All data has been backdated to include the new sample in historic data and the reports are now a broader representation of the accommodation market in Darwin.