That was largely due to a huge increase in the number of new hotels built over the past four years, Moors said.
Over that period, 22 new hotels opened in Melbourne adding 5187 beds, JLL’s Hotel Development Register shows. Another seven venues with 1860 rooms are still in construction or yet to be open, including the Shangri La on Exhibition Street.
Lanson Place with 137 rooms near Parliament House welcomed its first visitors last month.
By contrast, Sydney added 2271 beds in 11 new hotels over same period and, along with the Waldorf Astoria, has another five under construction.
Demand for hotels across the country has largely been led by domestic holidaymakers, but major events and an increase in international air capacity has contributed to strong recent growth, Moors said.
“The outlook is positive with a continued recovery in international visitation, especially from the key source market China, and corporate demand steadily returning,” he said.
Burke said most of the growth this year was in midweek demand, as meetings, corporate travel and international travel returned. “The consistent growth of new rooms has kept a handbrake on occupancy growth,” he said.
At least 40 extra return flights to Melbourne from Sydney and Brisbane were needed to bring 130,000 fans to the city for the AFL grand final.Credit:
Accor, Australia’s largest operator with 350 hotels and about 57,000 rooms, has launched a joint venture with lifestyle brand Ennismore, in which they will open a 25hours Hotel in Sydney, a Mondrian on the Gold Coast and a Hyde Hotel in Perth next year.
They have also signed up with property developer Alfasi Group to open The Hoxton in Melbourne’s Cremorne in 2027.
Accor’s Pacific region chief operating officer, Adrian Williams, said while the group’s Melbourne hotels were full for last weekend’s grand final, it also noted a substantial uptick in surrounding areas where occupancies exceeded last year’s figures.
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“The presence of two non-Victorian teams in the grand final contributed to the heightened demand and added extra capacity constraints,” Williams said.
Ennismore co-CEO Gaurav Bhushan said Australia had long been a strategic focus for the group. “The market conditions are right, with Australia having a strong and resilient business and leisure sector, allowing us to tap into both booking groups.”
Bhushan said the group’s hotels tap into rising demand for lifestyle brands, where “locals and international guests are looking for authentic, creative and immersive experiences, whether staying over or enjoying our restaurants and bars”.
Other notable openings this year include the Ibis and Novotel at Melbourne Airport, and The StandardX in Fitzroy, The Star Grand in Brisbane and the Marriott in Adelaide. The next to open in the coming months will be Melbourne Place, with 189 rooms.
The last opening in Sydney was the W (586 rooms) late last year, with The Eve Surry Hills’ 102 rooms set to open in the coming months.
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