Australia's accommodation sector has scored a A- in the hotel occupancy end-of-year report card released by Accommodation Australia.
AA CEO James Goodwin said occupancy figures show an improved performance overall, with Perth leading the way followed by Sydney, Hobart and then Adelaide.
“The end of year report card shows strong figures across most capital cities, scoring a solid A-,” he said.
“A good mix of international sporting and cultural events, world class performers and festivals across the year definitely contributed to the results as well as renewed confidence in business events and corporate travel.”
Goodwin added that the score would have been higher if more international tourists had visited throughout the year, with overseas arrivals still just below 2019 figures and extreme weather putting a dent in occupancy on the Gold Coast.
“The drive for the overseas dollar is certainly a focus in 2026 with hopes of a return to consistent, strong numbers throughout the year.”
Goodwin added that a record result for New Year’s Eve in Sydney had provided a sense of optimism heading into 2026.
“The good news is that almost all of Australia’s capital cities experienced an increase in average occupancy rates over 2025, with only Brisbane seeing a very slight fall of 0.6 percent and the Gold Coast down 2.8 percent.”
The second half year performance also saw increases in the average daily rate to just over AUD 230 with Sydney, Brisbane, Perth and Hobart all experiencing rises in line with inflation.
“Adelaide’s strong second six months had it ending the year with a five percent increase in occupancy rates, only beaten by Sydney CBD which saw a 5.2 percent increase to an average of 83.6 percent for 2025,” he said.
The AA report card for the 2025 also reveals the impact of outside events, like tours or weather on hotel room occupancy.
“The Gold Coast and Brisbane average occupancy for example did not completely recover the lost ground from the fall in occupancy due to the cyclone in March,” he said.
The Chair of Accommodation Australia David Mansfield said the sector has a positive outlook for the year ahead.
“There is a strong sense that we can improve demand by working together as a sector with governments and other tourism stakeholders for sustainable growth,” Mansfield said. Accommodation Australia will release its next mid year-report card at the end of June 2026.
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