New hotel room supply in Sydney, Australia has driven declines in both occupancy (despite the increase in demand) and hotel performance, according to a report from Horwath HTL Australia.

New properties are entering the market after years of a supply slowdown. Sydney has 17 new hotels, which were either opened or extended in 2017. These include the 136-room Mantra Hotel at Sydney Airport, the 209-room Travelodge Mascot, the 590-room Sofitel Darling Harbour, the 182-room Curio Collection by Hilton-West Hotel Sydney, the 119-room Holiday Inn Sydney St Marys and the 88-room extension of the Mercure Sydney Liverpool. The new properties added 2,437 guestrooms to the market.