Australia Hotel Market

Australia Hotel Market Overview:

The Australia hotel market size reached USD 6.74 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 17.23 Billion by 2032, exhibiting a growth rate (CAGR) of 11.90% during 2024-2032. The market is propelled by growth in international travel, rise of staycations, government’s investment in infrastructure development, and increased demand for luxury hotels, serviced apartments, and conference facilities.

Australia Hotel Market Trends:

Expanding Tourism Industry

Tourism development and growth in international travel contribute to the significant rise of Australia's hotel market. As per Australian Bureau of Statistics, in February 2023, there were 600,710 short-term visitor arrivals and an annual increase of 510,250 trips in Australia. The wide diversity of landscapes, iconic attractions, and unique wildlife have kept Australia at the top destinations list of travelers. With the easing of travel restrictions, tourists from regions such as the Asia-Pacific and Europe will eventually lead to high occupancy rates for hotels. International events, festivals, and natural wonders in Australia attract millions of visitors each year, fueling demand for accommodation. This resorting to tourism is strengthening the hotel industry and attracting more investments in both luxury and budget hotels across the nation.

Infrastructure Development

The Australian government’s investment in infrastructure development is a strong catalyst for growth in the hotel sector. According to the Department of Infrastructure, Transport, Regional Development, Communication and Arts, the Australian government has committed to a 10-year, $120 billion infrastructure investment pipeline, assuring a steady stream of sustainable land transport infrastructure projects. As of the 2024-25 Budget, the government has committed $96.5 billion to nation-building projects through the Infrastructure Investment Program during a 10-year period beginning. Major cities like Sydney, Melbourne, and Brisbane are seeing upgrades in airports, transport systems, and tourist facilities, which directly impact the hospitality industry. The expansion of regional airports has opened up new areas to tourism, increasing hotel occupancy in previously untapped markets. Additionally, international hotel chains and investors are taking advantage of these developments, establishing new properties to meet rising demand. This influx of investments is further boosting the quality and quantity of accommodation options available.

Rise of Business Travel

Business travel is a significant driver for the Australian hotel market. Major cities in the country have emerged as favorite corporate destinations due to their reputation for business events. Equipped with modern, well-equipped convention facilities, Australia is one of the favorite countries for business meetings and is also gaining ground as an international conference destination. This, in turn, has bumped up demand for five-star hotels, serviced apartments, and conference centers. Besides, since the pandemic, international business trips have picked up to further drive the sector as companies resume face-to-face meetings and events.

Australia Hotel Market News:

• In July 2024, Accor, Australia's leading hotel operator, has inked partnership renewal agreements for over 40 hotels totaling 5,500 keys across the country, demonstrating the Group's strong relationships with some of the country's most significant hotel owners.
• In September 2023, as per preliminary August 2023 data from CoStar, Sydney's hotel business posted its highest monthly performance levels since March 2023, assisted by the FIFA Women's World Cup.

Australia Hotel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on hotel type, business model, room capacity, and price level.

Hotel Type Insights:

• Business/Commercial Hotels
• Boutique Hotels
• Resort Hotels
• Casino Hotels
• Transit Hotels
• Bed and Breakfast Hotels
• Others
   

The report has provided a detailed breakup and analysis of the market based on the hotel type. This includes business/commercial hotels, boutique hotels, resort hotels, casino hotels, transit hotels, bed and breakfast hotels and others.

Business Model Insights:

• Independent
• Chain
   

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes independent, and chain.

Room Capacity Insights:

• Small
• Medium
• Large
• Very Large
   

The report has provided a detailed breakup and analysis of the market based on the room capacity. This includes small, medium, large, and very large.

Price Level Insights:

• Luxury
• Upscale
• Midscale
• Economy
   

A detailed breakup and analysis of the market based on the price level have also been provided in the report. This includes luxury, upscale, midscale, and economy.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Hotel Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia hotel market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia hotel market?
• What is the breakup of the Australia hotel market on the basis of hotel type?
• What is the breakup of the Australia hotel market on the basis of business model?
• What is the breakup of the Australia hotel market on the basis of room capacity?
• What is the breakup of the Australia hotel market on the basis of price level?
• What are the various stages in the value chain of the Australia hotel market? 
• What are the key driving factors and challenges in the Australia hotel?
• What is the structure of the Australia hotel market and who are the key players?
• What is the degree of competition in the Australia hotel market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia hotel market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia hotel market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia hotel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.