Savills Australian Hotel Transaction Review 2025

MARKET LOCATION PROFILE A greater proportion of CBD assets have transacted in 2025, with CBD transactions accounting for 58.4% of total sales volume in 2025, compared with 36.5% in 2024 , underscoring revived investor appetite for core, centrally-located assets. Total volume of CBD transactions was $1.1 billion in 2025, a 63.5% increase from $684.1 million in 2024. Meanwhile, regional transaction volume decreased from $597.8 million in 2024 to $355.9 million in 2025, or a 40.5% decrease. By actual number of transactions, CBD assets accounted for 25.0% of total hotel transactions in 2025, similar to 2024. In contrast, regional assets comprised 46.7% of total number of transactions in 2025, a decrease from 54.4% in 2024. Average deal size of CBD assets has increased from $48.9 million in 2024 to $74.6 million in 2025 (+52.6%). CBD hotel assets remain highly sought after and tightly held, with owners generally reluctant to divest amid positive RevPAR performance. Source: Savills & MSCI 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Savills & MSCI TRANSACTION VOLUME BY LOCATION TYPE 2023 2024 2025 CBD Regional Suburban NUMBER OF TRANSACTIONS BY LOCATION TYPE 35 30 25 20 15 10 5 0 CBD Regional Suburban 2023 2024 2025 I SAVILLS AUSTRALIAN HOTEL TRANSACTION REVIEW 24