Hotel Investment Potential Growing
Investment in hotels is picking up pace with new international flight routes and growing demand set to “supercharge” the sector.
A new report, Runway to Room, by CBRE tracks the launch of 56 new international flight routes in the past 12 months, which added more than 10,500 flights to key Australian cities.
It says this has direct implications for hotel performance.
“Australia’s hotel sector is entering a new phase of recovery, underpinned by strong demand fundamentals and the ongoing return of international visitation,” it says.
By the end of 2026, 2.2 million additional arrivals are expected per year, with 800,000 of those staying in commercial accommodation.
CBRE predicts Brisbane and Perth occupancy could increase by 4% and Sydney and Melbourne, between 3% and 4%. It also shows that Cairns, long a favourite coastal city with overseas visitors, has the potential to record a 4% lift in occupancy. Adelaide’s occupancy is forecast to increase by 2% supported by leisure and event visitation.
The report says Australia’s hotel development pipeline is entering a sustained period of limited supply, driven by elevated construction costs and productivity constraints.
