Hotel occupancy end of year report card: Solid A-
Accommodation Australia's James Goodwin reveals occupancy rates have improved overall, providing a sense of optimism for 2026.
It’s good to report the accommodation sector is heading into 2026 in a lot better shape than it was a year ago.
Back then I recall hoping for good things for the sector when I penned this column, and I can report that the nation’s accommodation sector has scored an A- in Accommodation Australia’s hotel occupancy end-of-year report card.
Occupancy figures show an improved performance overall, with Perth leading the way followed by Sydney, Hobart and then Adelaide.
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The report card shows strong figures across most capital cities.
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.
The score would have been even higher if we had managed to see more international tourists throughout the year, with overseas arrivals still just below 2019 figures and extreme weather putting a dent in Gold Coast occupancy,
I must say the drive for the overseas dollar is certainly a focus in 2026 with hopes of a return to consistent, strong numbers throughout the year.
We start the year on a good note, with a record result for New Years’ Eve in Sydney providing a sense of optimism heading into 2026.
But wait, as they say, there’s more.
The good news is 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 $230 with Sydney, Brisbane, Perth and Hobart all experiencing rises in line with inflation.
Adelaide scored particularly well too.
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Adelaide’s strong second six months had it ending the year with a 5 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.
It’s important to note the AA report card for 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 due to the cyclone in March—almost a year ago now.
That said, as the Chair of Accommodation Australia David Mansfield noted recently: “the sector has a positive outlook for the year ahead.”
David was spot on when he commented “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.”
I look forward to working closely with David and our Board throughout 2026 to deliver concrete results for our members in what we hope will be a great year.
Keep an eye out for Accommodation Australia releasing its next mid year-report card at the end of June 2026.
This article first appeared in the Summer edition of AccomNews. Click below to explore
