10,500 new flights could deliver 1.9 million extra room nights for Aussie hotels
Rising demand is tipped to push occupancy and RevPAR higher, especially as new hotel supply remains tight.
Australia’s hotel sector is set to benefit from a major boost in inbound travel, with new international flight routes tipped to generate demand for nearly 1.9 million additional room nights annually by the end of 2026.
According to CBRE’s new From Runway to Room Nights report, 56 new international routes will add around 10,500 flights into key Australian cities each year, which is a significant shot in the arm for hotels looking to build on the sector’s recovery momentum.
CBRE’s Head of Hotels Research, Ally Gibson said: “Increased capacity from core markets including China, India, Southeast Asia, North America and the Middle East is expected to drive a continued recovery in international arrivals, reinforcing aviation’s role as a critical lever for tourism and hotel sector growth.
“As these new services mature and inbound visitation continues to recover, the uplift in demand is expected to increase occupancy and RevPAR levels across key markets as Australia’s hotel development pipeline enters a sustained period of limited supply, driven by escalating construction costs and productivity constraints.”
CBRE’s modelling estimates that the uplift in international arrivals could increase hotel occupancy nationally by an average of 3.4 percent.
Supply-constrained markets such as Brisbane, Perth and Cairns are tipped to be among the biggest winners. CBRE Hotels’ Troy Craig noted that new flights would translate directly into performance gains for cities that already have limited room supply and strong leisure appeal.
Sydney and Melbourne will continue to ride the wave of robust corporate and leisure demand, with Sydney forecast to see the largest increase in demand: 13 new routes are expected to generate around 390,000 extra short-term visitors, driving an additional 542,000 room nights.
Melbourne isn’t far behind, with 12 new routes projected to add roughly 409,000 room nights by the end of 2026.
Perth stands out for its strong percentage growth in arrivals, with nine new direct services likely to bring in nearly 300,000 new visitors and generate 339,000 room nights.
Brisbane’s new routes align with its strategic growth push following the completion of its second runway, adding eight new services to deliver an expected 267,000 room nights.
Meanwhile, Cairns’ evolution as a premium leisure destination continues, with seven new routes forecast to add around 104,000 room nights, a welcome boost for operators chasing year-round occupancy.
As Australia’s hotel industry navigates rising costs and tight construction pipelines, operators will be watching these new flight routes closely, proof that what happens in the air can have a big impact on the ground.
