Up, up and away…Airport hotels take off as prime assets for hotel property investors
Airport hotels are rapidly emerging as a premium property asset category, says JLL Hotels and Hospitality’s Ross Beardsell and Wesley Milsom
There was a time when airport hotels were the unloved sector of the industry, just as they were with travellers. They were viewed as necessary, but only as a last resort.
Today, the attitude has changed dramatically, and airport hotels have become strategic assets that are transforming as fast as the precincts around them.
The latest print edition of AccomNews is out now. Read it HERE
While the imminent opening of Western Sydney International Airport (WSI) is shining a spotlight on the future direction and potential of airport precincts, existing airports are not being left behind, with a flurry of announcements about new and upgraded hotel projects in 2026.
Olympic impetus for Brisbane Airport expansion
Brisbane Airport is leading the charge with the announcement of two new hotels to support the existing three hotels servicing the domestic and international terminals.
JLL Hotels and Hospitality is currently undertaking the Hotel Operation selection on behalf of Brisbane Airport, and with Brisbane/South East Queensland set to be one the hottest tourism markets in the run-up to the 2032 Olympic Games, there is considerable interest in managing these prime assets.
One of the two new hotels will be located adjacent to the International Terminal, and have direct access to the terminal, as well as to a new car park.
The second will be a mid-level hotel located at the fast-growing Skygate retail and entertainment precinct, which was one of the first airport precincts in Australia to diversity from typical logistics and industrial businesses to large scale retail, including a massive DFO outlet as well as Queensland’s only round-the-clock Woolworths supermarket.
Are there enough hotels to cater for Western Sydney International Airport’s launch?
The first commercial passenger flights are due to land at Western Sydney International Airport in October, but the planned 200-room Courtyard by Marriott Western Sydney Airport has yet to break ground.
However, several hotels are underway in nearby suburbs that are designed to cater for the aerotropolis as well as rapid commercial and residential growth along the western access corridor.
Atura Oran Park is marketing itself as WSI’s first ‘airport hotel’ despite being 20 minutes away. The hotel is on track to open in October with 184 rooms and suites, along with F&B and conference facilities.
Unlike the typical airport hotel of the past, the Atura has been designed with a far wider scope including extensive communal spaces, a resort style outdoor pool area and a mix of room categories catering for business travellers, conference groups, families and extended stays.
With WSI’s 24/7 operational capacity the need for quality accommodation has resonated with ALAND, who are partnering with IHG to develop two Staybridge extended stay aparthotels in Leppington (a 20-minute drive to the airport) and Parramatta (35 minutes away).
Perth, Darwin and Sunshine Coast
Perth Airport’s proposed Pullman hotel development is in a holding pattern with a target opening date of 2027, but elsewhere airport precincts are accelerating down the runway.
Darwin Airport Resorts has plans for the addition of new conference and events facilities to service the Novotel, Mercure and Ibis hotels, along with an adjacent RV Park designed for up to 75 vehicles.
The RV Park is part of ADG’s pioneering project to transform the Darwin Airport precinct into a dynamic hub of business and leisure hospitality. Former ADG CEO, Tony Edmonstone, was responsible for implementing the airport redevelopment program, and he has recently taken up the position as CEO of Sunshine Coast Airport, which is similarly undertaking a massive expansionary program that will include a new hotel, along with retail and commercial precincts.
Why have airport hotels become such in-demand property assets?
Globally, the market for airport hotels is projected to grow from USD 23.48B in 2026 to USD 36.97B by 2034, an annual growth rate of 5.8 percent, with North America lead ing the development charge, but with Asia Pacific expected to grow fastest due to:
- New airport construction
- Terminal expansions
- Rapid passenger growth
- Underdeveloped airport-hotel supply
Airport hotels have become significantly more valued and resilient property assets in recent years, driven by robust pricing power, limited new supply, and strong institutional investor interest.
In Brisbane Airport’s case, a record number of passenger movements in 2025, the return of Asian markets, the prospect for new route expansion, and the 2032 Olympic Games were all compelling reasons for adding the two new hotels.
Brisbane Airport’s easy access to the whole of south-east Queensland and its links to more domestic destinations than anywhere else in Australia, provides the hotels with built-in, year-round demand and long-term value.
And on the ground, the decision over two decades ago to establish a large-scale retail and commercial precinct just a short distance from the international terminal diversified demand by attracting a significant local audience.
The rise of the ‘aerotropolis’ has boosted the versatility of airport hotels
These mixed-use districts are creating high-value, master-planned environments where airport hotels become anchor assets.
Sydney Airport’s 2045 Masterplan is factoring in a 75 percent increase in passenger volumes over the long term, which has prompted Minor Hotels to choose Sydney Airport for the introduction of its first NH Hotels property in Australia, an announcement that attracted some extra ‘sizzle’ by its decision to reintroduce the nostalgic Sizzler restaurant brand as part of the development.
Finally, what might be bad news for travellers is actually good news for airport hotel owners and operators.
Continuing political and climatic instability might be the worst scenario for airline passengers, but with governments now compelling airlines to provide greater support for disrupted travellers, delayed and cancelled flights are extending the blue-sky horizon for airport hotels.
Meet us at NoVacancy
Ross Beardsell has over three decades of experience in the hotel industry in senior management roles in operations and development. Working initially with Southern Pacific Hotels, then IHG and the Carlson Group, Ross worked in GM positions across the Asia Pacific. In 2008, he joined JLL’s Hotels & Hospitality Group, providing asset management services on behalf of hotel owners to maximise profitability and to provide strategic guidance. He has provided hotel advisory services to the owners of luxury, upscale, mid-market, new hotels, limited-service accommodation, resorts, convention hotels, and pubs – both nationally and internationally.
Wesley Milsom is Executive Vice President, Head of Asset Management & Strategic Advisory ANZ for JLL Hotels & Hospitality Group. Wesley has over twenty years expertise across a wide range of hotel assets throughout Australia and the Pacific, with a refined vision for identifying and capitalising on investment and value-add opportunities. Prior to joining JLL in 2026, Wesley spent six years representing various institutional owners in asset management and transactional services and 14 years leading the CBRE Hotels Valuation and Advisory team.
