Storm clouds, steady rooms: Sydney hotels hold their nerve
Sydney’s hotel sector remains resilient despite global uncertainty, with industry leaders pointing to strong travel demand, investor confidence and continued growth in the NSW market
Main image: L-R: John O’Shea, General Manager, The Fullerton Hotel Sydney; Chris Boyd, Senior Associate – Investment Sales Hotels & Hospitality Group, JLL; Besa Deda, Chief Economist, William Buck; Stacey McBride, General Manager, Accommodation Australia NSW; Antony Frino, Market Team Manager, Booking.com; and Paul Hammond, Sales, Pacific, STR.
Global tensions, rising costs and economic uncertainty may be rattling markets, but Sydney’s hotel sector is proving far more resilient than many expected.
That was the clear message emerging from the latest Accommodation Australia NSW Hotel Market and Economic Outlook Update, where around 150 hotel general managers and industry leaders gathered at The Fullerton Hotel Sydney to discuss the state of the market and what lies ahead.
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While speakers acknowledged recent volatility linked to global instability and softer short-term occupancy patterns, the broader outlook remained cautiously optimistic, with confidence that travel demand continues to rebound strongly after disruption.
Accommodation Australia NSW General Manager Stacey McBride said Sydney and NSW continue to attract both visitors and investment despite ongoing uncertainty.
“Despite the volatile occupancy in the short-term, the overall mood from the expert speakers was cautious optimism and a strong belief demand inevitably bounces back from these events,” she said.
William Buck Chief Economist Besa Deda provided an overview of the broader economic landscape, covering consumer confidence, household spending, labour market conditions, interest rate expectations and the Federal Budget’s implications for businesses and investment.
According to STR Pacific Sales Director Paul Hammond, Sydney’s hotel market continues to be supported by strong demand fundamentals, ongoing rate growth, major events and moderating supply growth.
Investment appetite also remains healthy.
JLL Senior Associate – Investment Sales Hotels and Hospitality Group Chris Boyd said Australia continues to attract both local and international hotel investors due to its reputation as a stable and transparent market, although elevated construction costs and financing challenges are slowing future supply pipelines.
Technology and changing traveller behaviour were also front of mind.
Booking.com Market Team Manager Antony Frino said AI and digital tools are increasingly influencing how travellers search, plan and book trips, while sustainability and experience-led travel continue to shape destination choices.
Frino also revealed Sydney remains one of the country’s strongest winter performers, ranking as the second most searched domestic winter destination and fifth overall when domestic and international searches are combined. Seven NSW destinations also featured in Booking.com’s top 30 domestic winter search destinations.
Read the latest edition of AccomNews HERE
