Savills Australian Hotel Transaction Review 2025

“BRISBANE’S GOLDEN DECADE” • Brisbane has also recorded a meaningful increase in hotel supply. Despite this, Brisbane’s occupancy remained stable at approximately 76% in both 2024 and 2025, demonstrating the market’s ability to absorb new rooms. • Brisbane recorded RevPAR growth of 8.9% in 2025, one of the strongest performances among the major cities in Australia, underpinned by a 8.6% increase in ADR over the same period. • The Brisbane Economic Development Agency (BEDA) has attributed this growth to the city’s expanding experience economy, supported by a robust calendar of major events, a strengthening tourism offering. • Continued investment in events and infrastructure, particularly in preparation for the 2032 Olympic and Paralympic Games, is expected to further underpin Brisbane’s medium- to long-term hotel demand outlook. DEMAND FOR PREMIUM HOTELS • At a national level, luxury and upper-upscale hotels have been the main contributors to new supply, which had a 2.1% room supply growth in FY2024/25, compared with overall national room supply growth of 1.0% in the same period. • This trend highlights a shift in the Australian hotel market toward premium product offerings, underpinned by strong investor appetite for assets delivering differentiated design and experience-led positioning. • The sector’s recovery has been further supported by the resurgence of travel demand, particularly following the reopening of key international routes to Asia and Europe. • Influenced by high build costs, luxury hotels are expensive to build, but high costs means such developments could be more feasible if forming part of a mixed-use development. I SAVILLS AUSTRALIAN HOTEL TRANSACTION REVIEW 33