Vivid gives Sydney CBD hotels a boost, but has little impact on city fringe venues
Sydney’s Vivid Festival has given hoteliers a big boost, with room rates increased to $800 a night.
CBRE national director, hotels, Wayne Bunz said finding a room was difficult and the high price was for a minimum of multiple nights.
“And that was if you would take a minimum of two or three nights,” Bunz said.
“Those events are critical in any hotel market because the demand allows hotel owner-operators to manage their average room rates up.”
However, venues on the fringe of the CBD were unable to capitalise.
The NSW capital came alive during the Vivid drone show, which was held in conjunction with the Sydney Film Festival.
According to New CoStar figure, the combination of the two events
New CoStar figures released on Wednesday reveal that the Vivid drone show, in conjunction with the Sydney Film Festival, boosted Sydney's hotel performance in June to an occupancy rate of 72.6 percent, a 1 percent increase from the previous year. The average daily room rate rose by 1.5 percent compared to the prior year, and revenue per available room (RevPAR) increased by 2.5 percent to $176.81 per night.
Washington-based CoStar noted that the average daily rate (ADR) and RevPAR were the highest ever recorded for any June in Sydney. The hotel ratings agency reported that ADR hit $312.35 and RevPAR hit highs of $274.90.
“Sydney posted its highest occupancy of the month (88 per cent) on Saturday, June 8, which was the first night of the Vivid drone show as well as of the fourth night of the Sydney Film Festival. Sydney’s second-highest occupancy level during the month (82.7 per cent) was seen the next night,” CoStar said.
“Collectively, Vivid Sydney delivered almost identical year-over-year results with RevPAR 0.4 per cent lower than 2023,” it said. “Demand was 2.9 per cent higher but balanced out by a 3.2 per cent rise in supply.”
However, for billionaire hotel mogul and richlister Arthur Laundy the festival did nothing.
“When there are any festivities in the city, patrons don’t walk over the hill to us at Woolloomooloo Bay,” Laundy told The Australian.
“But Vivid would have been fabulous for publicans like Peter Ryan around Circular Quay.
“Vivid doesn’t affect me.”
For Laundy, extra foot traffic comes from, well, foot traffic events such as marathons and half marathons.
“On a Sunday morning I go to (my) Watsons Bay Hotel, Bells Hotel in Woolloomooloo and the Woolloomooloo Bay Hotel,” Laundy said.
“The place was chock a block because they finish at St Marys Cathedral and it’s full of runners. They come down for a drink. I had a great time for a few hours. That did affect us and gave us a boost. People come.
“(But) for New Year’s Eve I don’t get anything from the city, with all the fireworks. I wouldn’t get people watching the fireworks. Woolloomooloo Bay is not for fireworks or Vivid.
“My June was just ordinary, nothing special. Things are tough at the present time.”
Jonathan Jackson, 11th July 2024
