Savills Australian Hotel Transaction Review 2025

INTERNATIONAL TOURISM Tourism demand in Australia is expected to continue strengthening over the medium term, with Tourism Research Australia (TRA) forecasting growth in both international visitation and domestic visitor nights in the coming years. While international visitation has yet to fully recover to pre-COVID levels, TRA anticipates a return to pre-pandemic volumes between 2026 and 2027 . The slower pace of recovery observed in 2025 largely reflects a challenging global economic environment, heightened geopolitical uncertainty, and ongoing conflicts, which have weighed on international travel sentiment. Over the next three years, the number of international visitors is forecast to grow by approximately 4% to 6% per annum. TOURISM OUTLOOK This recovery is expected to be driven by several factors: • Continued expansion of aviation capacity and the opening of Western Sydney Airport. • Major international entertainment and sporting events. • Strengthening ties between Australia and high-growth markets in Asia-Pacific. Source: TRA Visitor arrivals (in millions) INTERNATIONAL SHORT-TERM VISITOR ARRIVALS 12 10 8 6 4 2 0 2019 2020 2021 2022 2023 2024 2025F 2026F 2027F 2028F 2029F 2030F I SAVILLS AUSTRALIAN HOTEL TRANSACTION REVIEW 34