Savills Australian Hotel Transaction Review 2025

HOTEL SUPPLY AND DEMAND In the Financial Year (FY) 2024/25, Adelaide recorded the strongest hotel room supply growth at +5.3%, followed by Brisbane (+4.2%), Hobart (+2.4%), and the Gold Coast (+2.3%). In contrast, supply growth in Melbourne moderated, increasing by 1.7% over the same period. Sydney, which recorded the highest room supply growth among major Australian cities in FY2023/24, has since seen development activity slow, with supply growth of 1.8% in FY2024/25. HIGH SUPPLY GROWTH IN ADELAIDE • Adelaide has experienced a notable increase in new hotel supply since FY2022/23, with room supply growing by 9.7% in FY22/23, 1.4% in FY23/24, and 5.3% in FY24/25. The supply additions have been higher quality branded hotels that have stimulated visitation demand to the city. • Despite this influx of new supply, Adelaide’s occupancy has shown steady improvement, increasing from 71% in 2023 to 72% in 2024, and reaching 76% in 2025. This performance has also been supported by a strong calendar of major events, including LIV Golf, WOMADelaide, and large-scale business events such as TSANZSRS. Source: STR ROOM SUPPLY GROWTH FY24/25 Perth -0.8% 0.2% 0.3% 1.0% 1.7% 1.8% 2.3% 2.4% 4.2% 5.3% Darwin Canberra Australia Melbourne Sydney Gold Coast Hobart Brisbane Adelaide I SAVILLS AUSTRALIAN HOTEL TRANSACTION REVIEW 32