Savills Australian Hotel Transaction Review 2025

TRANSACTION TRENDS IN RECENT YEARS The strengthening momentum observed in 2025 relative to 2024 was supported by improving market confidence, underpinned by multiple cash rate cuts implemented throughout the year, which contributed to more favourable financing conditions. Transaction activity was strongest in Q3 2025, with 20 hotel transactions recorded, before moderating in Q4 2025. Notwithstanding this late-year moderation, overall market performance in 2025 points to a positive outlook for 2026, supported by improving investor sentiment favourable hotel market fundamentals and increasing international investor interest. Deal size composition skewed toward small- to mid-market assets leading to a slight decline in the average deal price from $34.0 million in 2024 to $32.5 million in 2025 (-4.7%). Source: Savills & MSCI $60 $60 $60 $60 $60 $60 $60 Volume in Millions AVERAGE VOLUME PER TRANSACTION 2017 2021 2019 2023 2018 2022 2016 2020 2024 2025 Source: Savills & MSCI NUMBER OF TRANSACTIONS BY QUARTER 25 20 15 10 5 0 Q1 Q2 Q5 Q4 2023 2024 2025 I SAVILLS AUSTRALIAN HOTEL TRANSACTION REVIEW 13