Australia Luxury Hotel Market Report and Forecast 2024-2032

Australia Luxury Hotel Market Outlook

The Australia luxury hotel market size is projected to grow at a CAGR of 1.8% between 2024 and 2032.

Key Takeaways

• As per industry reports, there will be 9.5 million international visitors in Australia, in 2025 and 11.0 million foreign visitors are anticipated by 2027.

• 85% of Aussies were booking hotels online in 2023, which is forecast to grow to 91% by 2027.

• Approximately 8,400 new rooms are scheduled for completion across major hotel of Australia in 2024. Nearly 65% of these new rooms will be of high quality, elevating luxury hotel standards across Australia, with Melbourne receiving the largest share of new room supply.

• According to google search trends 2022, 3-star hotels saw an increase of 31% in searches.

The Australia luxury hotel market is growing due to the introduction of new premium facilities by key players to enhance competition and attract more guests, the growth in international tourism, the adoption of smart hotel technology incorporating the Internet of Things (IoT) to offer convenience and efficiency, the growing emphasis on sustainable practices in hotel operations to attract environmentally conscious travellers, the utilisation of robot staff for automation and enhanced guest experiences, and the integration of Virtual Reality and Augmented Reality technologies to provide immersive and interactive experiences for guests.

Luxury hotels in Australia are increasingly incorporating smart technologies, such as automated check-in processes, in-room voice control systems to enhance guest experiences and streamline operations. Hotels are also integrating spa facilities, fitness centres, and wellness programs to provide guests with rejuvenating and wellness-focused stays.

The Australia luxury hotel market development can be credited to the surge in investment levels. Brisbane is emerging as a favoured hotel development hotspot, with significant room openings expected between 2024-2027, including the luxurious Queens Wharf Brisbane project with three new hotels. This growth trend extends to major cities like Adelaide, Gold Coast, and Melbourne, with opening of luxury hotels, such as Marriott Adelaide and Shangri-La Melbourne planned.

Among room types, luxury and upscale rooms have outperformed, boasting a national average occupancy level of 70% and a room rate of USD 326, showing a substantial 59.5% growth compared to the previous year. This data underscores the robust performance of the Australian luxury hotel market, attracting both investors and developers to capitalise on the growing demand for high-end accommodations.

Market Segmentation

Australia Luxury Hotel Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Suite Hotels

• Business Hotels

• Resorts

• Airport Hotels

• Others

Market Breakup by Category Type

• Independent

• Chain

Market Breakup by Room Type

• Upper-Upscale

• Upscale

• Luxury

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are focused on introducing new premium facilities to increase competition and attract more guests, further investing in mergers and acquisitions to expand their portfolios.

• Hyatt Hotels Corporation

• Langham Hotels International Limited

• Baillie Lodges

• Reef House Palm Cove

• Mount Lofty House

• Others

Key Highlights of the Report