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DEVELOPMENT: 2025 AUSTRALASIAN DEVELOPMENT OUTLOOK
from HM JUNE 2025
2025 AUSTRALASIAN DEVELOPMENT OUTLOOK
KEY LEADERS SHARE THEIR INSIGHTS INTO AUSTRALASIA’S EVOLVING HOTEL DEVELOPMENT LANDSCAPE.
ACCORLindsay Leeser, Pacific Chief Development Officer
The mood across the Pacific is optimistic – and rightly so. While the world faces its share of economic challenges, the hotel industry in the Pacific is charging ahead with confidence, resilience and a clear eye on the future.
At Accor, we are proud to continue our growth trajectory, with close to one hotel opening per day globally last year. It is true that interest rates remain high, and construction costs are elevated – but the fundamentals of our industry are strong. According to a recent Deloitte report, hotels have climbed to the fifth most preferred asset class for investors, and transaction volumes are on the rise. Hospitality continues to prove itself as a resilient and rewarding investment.
The trends are equally encouraging. Independent owners are increasingly turning to collection brands like our Handwritten Collection. Hotel Woolstore 1888, Sydney – Handwritten Collection is a brilliant example of a unique property that now has a global platform and loyalty ecosystem through its connection to Accor.
Branded residences, once the territory of classic luxury, are now thriving across lifestyle and premium segments. Mondrian Residences Burleigh Heads on the Gold Coast exemplifies this shift.
Signings for Accor’s premium brands have increased 150% since 2019, with global brands such as Pullman, Mövenpick, and Swissôtel, and regional brands such as The Sebel and Peppers, offering strong returns on investment.
We are focused on destinations with strong potential, including Tasmania, Fiji, and key airport and tourism precincts. Longer-term, the rise of the global middle class, especially in India and Southeast Asia, will continue to shape demand across the Pacific.
Scale matters, and our track record in strategic acquisitions, from Mirvac to Mantra Group, speaks for itself. Our recent deal with Bayview International Hotel and Resorts, adding three iconic properties to our portfolio, further strengthens our presence and performance across this great region.
We are focussed on creating hotels that serve not just visitors but locals too – places to stay, gather, work and play. In a region full of energy and opportunity, the future of hospitality in the Pacific is brighter than ever.
ASCOTT AUSTRALASIADavid Mansfield, Managing Director
Nobody could accuse 2025 of being a boring year. With economic and political uncertainty here and abroad, the resilience and fragility of the accommodation sector have both been on display, ultimately delivering a strong sense of resolve among the industry.
The cautious optimism with which we started the year has proven sound. As we approach the mid-point of this year, there’s an opportunity to reflect on what has challenged us in the accommodation industry, where the opportunities are, and what to expect in the future.
From natural disasters in Queensland and NSW, to tariffs upending market confidence across the globe, navigating what it means for the tourism sector is ever-changing. During Cyclone Alfred, CoStar STR data showed that on the 11th of March, occupancy in the Gold Coast region was down 38%, versus the same day last year. In the Northern Rivers region, occupancy was down 60%. In the face of these challenges, I’ve remained inspired by the way in which our industry has rallied to meet the needs of the community and guests.
Looking forward, I’m buoyed by the ways in which our industry centres the changing needs of guests. We know travellers have an appetite for culture-led travel that is continuing to grow across 2025/26. Our ‘Quest to see Australia’ initiative is answering this need, with a multi-property booking tool and road-trip itineraries that guide guests to the best of our country’s food, wine, nature and First Nations experiences.
Practically speaking, blending work and leisure is more important than ever to guests. Our 197-unit Lyf Bondi Junction property, launched in April, is perfectly timed to capitalise on this with its vibrant communal spaces and networking mixer events. Across our Ascott brands, we’re seeing a continuation of value-based travel. According to Statista, more than 80% of global travellers believe sustainable travel is important, and we’re experiencing enthusiastic uptake of our sustainability initiatives – our partnership with Hotel for Trees has resulted in more than 10,000 trees planted (and counting).
Ultimately, I believe our period of reckoning, reflection and innovation has moulded us into an entirely new industry: one that seeks above all to remain adaptive, intentional and future-focused.
CHOICE HOTELS ASIA-PACTrent Conroy, Head of Investments and Portfolio Growth
The Australasian greenfield development market continues to witness feasibility challenges, with elevated construction costs, inflation, and tighter lending conditions dampening new supply pipelines. In this environment, Choice Hotels Asia-Pac is focusing on strategies with lower capital intensity and faster speed to market, like asset repositioning and refurbishment into midscale and upscale brands –this is emerging as a favoured option for many hotel investors.
Our conversion-friendly brands appeal to developers and investors seeking to mitigate the risks and costs of new builds. We see sustained momentum as owners reposition properties into our brand family, leveraging our extensive sales network and loyalty platform.
Our internal analysis has identified over 1,500 independent hotels in Australia as strong candidates for conversion, representing a tremendous opportunity. Unlike ground-up developments, conversions require less capital, can be executed faster and deliver ROI sooner.
Supporting this trend is the evolving landscape of hotel operating models. The rise of white label management from both established and emerging operators has created unprecedented flexibility. Hybrid structures are becoming more common, with owners pairing a Choice Hotels brand with a third-party operator under either hotel management agreement (HMA) or leasehold structures, allowing owners to select the model best suited to their investment strategy and operational preferences.
Investor interest in regional Australia also remains strong, with branded properties often delivering above-average returns in these areas.
We’re actively working with investors to unlock value in these markets.
Finally, the growth of multi-unit franchisees within the Choice Hotels network highlights our model’s scalability and operational benefits, with owners, both freehold and leasehold, leveraging centralised operations, cluster staffing models, procurement synergies and greater leverage with lenders. Coupled with support from Choice Hotels, the portfolio effect can unlock compelling financial outcomes.
Amid development constraints, Choice Hotels’ focus on conversions, flexible models, and regional expansion to enable robust, scalable growth is appealing to both first-time investors and experienced groups, positioning the company for continued momentum in 2025 and beyond.
EVTNorman Arundel, Director of Hotels & Resorts Operations
With cost-of-living pressures rising at home and conflict unfolding across the globe, you might expect demand for hotels to cool and growth to slow. But at EVT, we’re seeing the opposite. Despite the noise and uncertainty, guest demand remains strong across all segments – particularly in Australia’s mainland capitals, where domestic and international travellers continue to seek quality, well-run hotels. That demand is driving continued expansion across the EVT hotel network.
We’re seeing clear growth opportunities for QT, Rydges, and Atura, each delivering distinctive value to their markets. Interest in Lylo is especially strong, driven by the brand’s superior yield per square metre and high appeal to a growing budget traveller segment. At the same time, our Independent Collection has become one of our fastest-growing segments, offering hotel owners the ability to retain their own brand while leveraging EVT’s management expertise. The value proposition is unique, and the results speak for themselves. That said, we’re not mistaking momentum for inevitability. We know sustained growth relies on what we do every day: running great hotels, delivering results for our owners, and maintaining exceptional guest experiences while elevating our people, communities and environment.
At EVT we take a simple view, if we listen to our customers and continue to innovate whilst looking after our existing hotels and relationships with care and consistency, growth will follow. In an industry often preoccupied with the basics of good branding, loyalty programs, and distribution platforms - each important in their own way – we haven’t lost sight of what really matters: responding to our customers, agile operations and strong relationships. That’s where EVT places its focus. That’s what’s driving our momentum.
HILTON Tushar Raniga, Director of Development Australasia
Australasia’s hotel sector is entering a dynamic phase of growth and transformation, and Hilton remains confident in the region’s long-term potential. As we celebrate 50 years of Hilton in Australasia, our legacy in the region underscores our commitment to driving meaningful growth and delivering exceptional guest experiences.
Tourism recovery is accelerating, with international arrivals nearing 2019 levels and full recovery expected by 2026. Regional travel and staycations are also driving demand – especially in destinations like Albany and Busselton – where our Hilton Garden Inn brand is performing strongly. These regional markets offer prime opportunities for further expansion of our focused service brands. With stabilising interest rates and renewed offshore capital interest, investor sentiment is strong and we see a shift of capital into the hospitality asset class given its bright prospects. Construction cost pressures remain, but the shift toward conversions is opening new avenues for growth.
Luxury continues its upward trajectory. We’re excited to bring our Waldorf Astoria brand to Sydney’s Circular Quay and are actively exploring opportunities to expand iconic brands like Waldorf Astoria, Conrad, and LXR in the region.
Event-driven demand remains a powerful driver. From major concerts to hallmark events like Sydney’s New Year’s Eve celebrations, C&E business continues to deliver strong trading results across our Hilton portfolio.
We see major potential in expanding our full spectrum of offerings –from luxury to focus service – across high-performing cities like Sydney, Perth, and Brisbane, as well as emerging areas like the Western Sydney Aerotropolis. As always, Hilton’s focus remains on delivering exceptional guest experiences while driving industry-leading returns for our owners across Australasia.
IHG HOTELS & RESORTSCameron Burke, Director of Development – Australasia & Pacific
As our industry continues to navigate an ever-evolving development landscape, new capital deployment strategies focusing on asset repositioning and acquisitive opportunities in both secondary and tertiary markets is becoming increasingly prevalent for investors and developers alike. For IHG Hotels and Resorts, this intersection of conversion capability and regional momentum is fuelling the growth of our estate across the Australian market.
In the first half of 2025, we announced the signings of InterContinental Barossa Resort and Spa, Holiday Inn Townsville, and Voco Darwin Suites which collectively speaks to our conviction in the potential of regional Australia. These locations are rich in latent demand but constrained by an undersupply of quality accommodation. For IHG, they represent compelling opportunities to harness the strength of our globally renowned brands and unlock enhanced returns for the benefit of our owners.
In parallel, the soon-to-open Voco Gosford and Crowne Plaza Shell Cove Marina further illustrate our commitment to reshaping Australia’s regional accommodation offering. These projects are thoughtfully aligned with increasingly discerning traveller preferences, particularly the demand for destination-led experiences that set new standards of quality within their local markets.
In key capital cities, conversion opportunities have never been in greater demand. From underperforming assets to legacy properties in need of reinvention, IHG’s extensive experience in conversions offers a compelling pathway to revitalisation and return. A leading example of this is our recently announced InterContinental Brisbane, which will be transformative in its repositioning and showcase how an existing property can be elevated into a flagship destination under the right brand and stewardship.
As we look ahead, IHG remains focused on accelerated growth by identifying opportunities where our brand resonance, operational excellence, and local market insight converge to deliver lasting owner value. With strong investor appetite, a dynamic pipeline, and a reactive focus on regional expansion and conversion-led transformation, we see extraordinary potential to elevate the Australian hotel landscape through IHG’s suite of market-leading brands. It’s not just about expanding IHG’s footprint – it’s about reshaping what great hospitality looks like across every corner of Australia.
LA VIE HOTELS AND RESORTSJerry Xu, Chief Executive Officer
As we move into the second half of 2025, La Vie Hotels and Resorts continues to execute its long-term strategy with focus, consistency, and a clear sense of purpose. As the region’s leading independent hotel management company, La Vie is committed to delivering exceptional results for its partners while supporting distinctive, guest-focused hotel experiences across the Asia-Pacific region.
At the heart of our model is a dual offering: white-label hotel management and franchising with established international brands. This approach gives hotel owners the flexibility to choose the strategy that best fits their goals – whether that means operating under a globally recognised name or maintaining an independent identity with professional support behind the scenes. In both cases, we bring hands-on operational leadership, strong commercial systems, and a results-driven mindset focused on long-term value creation.
Our in-house lifestyle brand, NOOE, also continues to gain traction, with a second property set to open in Thailand in 2027. While our core focus remains on white-label
and branded franchise operations, NOOE represents a complementary option for select owners looking for a differentiated, experience-led concept with La Vie behind it.
As our portfolio grows, so too does our infrastructure. This year, we’ve expanded our support capabilities with a new office in the Philippines, which now handles centralised reservations and finance operations across our network. In addition, we’re in the process of establishing a new office in Shanghai to support our property portfolio across the Asia Pacific region, recognising China’s vital role as a key feeder market – a move that reinforces our long-term commitment to the region.
Looking ahead, our mission remains clear: to be a trusted, agile partner for hotel owners and investors. We bring the scale and expertise of a global operator with the flexibility and responsiveness of an independent company. With a growing portfolio, strengthened capabilities, and a sharp focus on performance, La Vie is well positioned for the next chapter of sustainable growth.
MARRIOTT INTERNATIONALRichard Crawford, Vice President of Hotel Development Australia, New Zealand, and the Pacific
It has been well documented that strong hotel development headwinds across Australasia have seen many new hotel projects paused or abandoned over the past three years. Thirteen interest rate hikes, escalating inflation, a significant increase in construction costs, constrained availability of debt, and scarcity of tier-one builders, have resulted in developers taking a “wait and see” approach. It is therefore now encouraging to see abatement in certain key macroeconomic circumstances fueling renewed appetite across the hotel investment sector.
A key aspect of Marriott’s expansion in Australia and New Zealand has been the revitalisation of the luxury accommodation segment, driven by a resurgence in affluent domestic travel, in what our industry is widely terming a “flight to quality”. Our Ritz-Carlton, JW Marriott, W, and Luxury Collection hotels in Australia have been amongst our highest performing assets in recent years, demonstrating evidence of strong demand for luxury experiences with global pedigree.
Record average room rates at these hotels have given confidence to hotel developers, who recognise there is now a strong business case for luxury hotels in Australia. This strong investor appetite has led Marriott to announce the development of St. Regis, Ritz-Carlton, and Luxury Collection resorts on the Gold Coast. Notably, global demand for luxury travel is expected to grow by 9% over the next three years, whilst new hotel supply in this segment will only increase by 5%, signalling a favourable outlook for hotel investors.
In recent years, Marriott International has added four luxury hotels to our Australia Pacific portfolio, with the opening of W Sydney, The Ritz-Carlton Melbourne, JW Marriott Auckland, and The Tasman, Hobart a Luxury Collection Hotel.
During the same period, seven hotel openings in lower tier segments included Le Méridien Melbourne, Moxy Sydney Airport, AC Hotel by Marriott Melbourne Southbank, Courtyard by Marriott Perth Murdoch, Marriott Executive Apartments Port Moresby, Adelaide Marriott Hotel, and Courtyard by Marriott Darwin.
These developments, including our recent announcement of a newbuild Marriott hotel in Parramatta, represent many new market entries for Marriott, which is a strategic priority for the business as we seek to offer our loyal customers more choice, in more destinations.
Marriott’s recent acquisition of a number of global brands, notably City Express and CitizenM, open up significant new market opportunities in the midscale segment, which is exciting new territory for our company.
It is clear that the most challenging post-pandemic headwinds are now behind the hotel investment community. As a result we look forward to announcing several new hotel projects across Australia and New Zealand in the coming months.
MINOR HOTELSRussell Cool, Director of Franchising, Australasia
As hotels pursue global expansion, franchising’s appeal to accelerate the growth strategy is rising, with hotel brands seeking like-minded owners eager to build their business side-by-side.
However, success in this space requires a flexible approach rather than a standardised model. Owners no longer want a cookie-cutter strategy, they want partners with global reach and expertise, whose approach is designed to align with their specific strengths, and needs.
Our goal is not simply to expand our footprint, but to assess each opportunity based on its potential, merit and brand alignment, with the aim of ensuring each hotel performs at its best by striking the ideal balance between maintaining control over key decisions with leveraging the credibility, resources and brand recognition of an established brand.
At the same time, the rise of Third-Party Operators (TPOs) is reshaping the industry, particularly in Australia. Companies such as Trilogy, Gatehouse, and 1834 are helping hotel owners manage their properties under franchise agreements, ensuring that operations align with the franchisor’s standards while allowing owners to focus on long-term performance.
Both conversions and new-build franchise opportunities play a role in our expansion strategy. Of course, converting existing hotels into franchised properties can yield immediate benefits, as owners can quickly integrate into a proven system and enhance performance. While new build projects require more time to develop, they allow for greater control over the property’s design and positioning within a given market and create long-term opportunities for growth.
For hotel owners, the benefits of teaming up with a major brand are clear: accessing national and global booking systems to showcase the property to a wider audience; on-the-ground sales and account support to secure high-value bookings; access to established loyalty databases to attract repeat guests; leveraging the buying power of the Minor Hotels brand and umbrella network to benefit from economies of scale to increase profit margins; risk mitigation compared to operating independently.
OUTRIGGER HOSPITALITY GROUPJeff Wagoner, President & CEO
As we look to the future of hospitality development in Australasia, we see a region brimming with opportunity that’s driven by resilient leisure demand and an increasing desire for immersive, responsible travel. At Outrigger Hospitality Group, our growth strategy in this part of the world is rooted in a clear vision: invest in iconic beach resort destinations where we can authentically elevate the guest experience while supporting local communities and ecosystems.
The path forward is not without complexity. Labour shortages, rising costs and climate pressures require thoughtful planning and disciplined execution. For Outrigger, that means focusing on current assets and enhancing them for long-term value creation – both for guests and investors.
In Fiji, we’ve recently completed a significant enhancement to Outrigger Fiji Beach Resort, unveiling all-new beachfront pool bures and beautifully landscaped resort-view courtyards. These additions bring renewed energy to the resort while honouring its deep ties to Fijian culture and hospitality. At nearby Castaway Island, Fiji, we continue to invest in preserving the authenticity of this cherished private island experience while subtly refining the guest journey.
Australasia continues to be an attractive market for us, particularly for absolute beachfront properties that align with our brand DNA. However, the region is highly competitive and every opportunity for Outrigger must strike the right balance of cultural fit, location and strong return on investment. We remain active in the region and are consistently evaluating opportunities to grow the Outrigger brand across these spectacular coastal destinations.
PANACHE HOTEL GROUPThomas John (TJ), Vice President Strategy & Development
The Australasian hotel landscape is evolving rapidly, presenting both headwinds and opportunity. At Panache Hotel Group, we’re meeting these conditions with agility – balancing innovation with disciplined strategy to unlock value for owners and guests.
Rising operational costs – wages, insurance, and utilities - remain a major challenge. But in this pressure lies opportunity. We see significant potential in asset repositioning, tailoring existing properties to meet evolving demand. For example, converting underperforming assets into extended-stay or boutique upscale offerings can significantly enhance profitability. This strategy is particularly relevant in secondary and regional cities across Australia and New Zealand, where affordability, lifestyle shifts, and population migration are driving demand.
Owners are also seeking greater flexibility. White-label management platforms, such as ours, are gaining traction as cost-effective, brandagnostic alternatives to traditional models. At Panache, our hybrid “lanchise” model – blending leasing and franchising – offers guaranteed income for owners while maintaining strong brand or independent positioning. This alignment of interests has become a critical success factor in today’s market.
Sustainability and mixed-use thinking are no longer optional – they’re foundational. We’re embedding practical environmental initiatives into new projects from the ground up, ensuring both future-proofing and market relevance.
We’re also observing a shift in transaction activity: smaller portfolio sales, part-share investments, and value-add acquisitions are shaping the current deal landscape. These are areas where Panache is especially active, offering tailored solutions and hands-on support to like-minded owners.
As the market matures, product differentiation will separate the leaders from the pack. Our focus remains on creating hotel experiences that resonate with modern travellers and deliver long-term value. With a flexible model and a bold development outlook, Panache is well placed to thrive in 2025 and beyond.
PAN PACIFIC HOTELS GROUPCraig Bond, Senior Vice President – Head of Operations
At Pan Pacific Hotels Group, we see Australasia as a region of resilient opportunity and focused reinvestment of our growth strategy. While the pace of new supply has moderated due to rising construction costs, this has created renewed value in the optimisation of existing assets – a strategy we’re actively pursuing.
Over the past year, we have completed three major refurbishments across our Australian portfolio, Pan Pacific Perth, Parkroyal Parramatta, and Parkroyal Melbourne Airport, representing a multi-million-dollar investment in uplifting guest experience, MICE capability, and brand consistency. These upgrades reflect strong confidence in the domestic market and also align with our vision to position these properties as future-facing leaders in business and events travel.
We’re also closely watching secondary city growth corridors such as Western Sydney, Perth CBD, and inner-Melbourne, which are each undergoing significant infrastructure and business investment. These are locations where we see sustained demand from corporate, government, and lifestyle segments alike.
From a brand standpoint, Pan Pacific Hotels Group remains focused on owner-operator and strategic management models, particularly in markets where we can leverage our operational strength and design integrity. Our recent GSTC multi-site certification across all six Australian hotels is also proving to be a key differentiator in both consumer and B2B decision-making.
While new development remains challenging in the short term, we’re optimistic. For PPHG, 2025 is about deepening our presence through asset enhancement, brand-led experiences, and sustainable growth strategies that deliver long-term value to owners and guests alike.
SALTER BROTHERS HOSPITALITYRaphael Antonini, Chief Development Officer
2024 was an outstanding year of growth for Salter Brothers Hospitality (SBH) with our portfolio of luxury retreat hotels growing to 20 under management following the recent acquisition of the Bannisters portfolio. Expansion will continue in 2025 through asset light growth and new acquisitions. In 2025, we will launch our exciting new brand, Ardour Hotels and Estates and undertake significant renovations at two of our most iconic hotels – Milton Park Country House and Spa in Bowral and Lilianfels Resort and Spa Blue Mountains.
In our view, the fundamentals of the Australian hotel market remain robust and are supported by infrastructure growth, steady tourism demand, and limited new supply in key markets.
Operating luxury boutique hotels in urban and regional markets remains operationally complex and margin sensitive. SBH fills a critical gap, offering tailored management and branding solutions that deliver economies of scale in distribution, procurement, technology, and operational expertise.
Investors are placing greater emphasis on product quality and experiential differentiation. Renovated, well-positioned properties with elevated wellness offerings, destination restaurants and curated on-site experiences are outperforming the market. Our expertise in design, brand identity, and management expertise has become pivotal in distinguishing ourselves and achieving enhanced financial outcomes.
We are also unlocking the potential in low-touch wellness offerings, particularly bathhouses and spa-inspired experiences that align with today’s guest preferences. These concepts are increasingly in demand, delivering moments of restoration and luxury without the need for heavy staffing or complex operations. Conversely, we are dedicated to providing exceptional high-touch guest experiences in key areas such as destination dining. Our 29 restaurants and bars located in our retreat hotels across Australia, showcase award-winning cuisine and exemplary service standards.
We believe the luxury and lifestyle segments where travellers are seeking meaningful and experience-rich stays will continue outperforming, particularly in leisure-driven regional locations such as the Blue Mountains, Hunter Valley, Sunshine Coast and Port Stephens where we have established a significant market presence.
TFE HOTELSJohn Sutcliffe, Director of Development
TFE Hotels continues to see robust performance across our portfolio of hotels as the industry continues to recover across the majority of Australian and New Zealand markets. As an owner and developer ourselves, we are acutely aware of the challenges faced by the market over recent months and years and have evolved our operating models and systems to ensure that we continue to generate the maximum returns possible.
Despite the green shoots we are seeing, challenges remain with regards to increased construction and operational costs, and the absorption of new supply in some key markets, as well as ongoing global economic uncertainties. These headwinds make new developments harder to stack up, however our transparent operating model continues to provide confidence to owners and developers to build new hotels, transition current hotels to TFE management, and to refurbish their current assets.
Mixed-use developments and hotels forming part of a larger precinct continue to support the commercial viability of new developments. TFE Hotels has been developing and operating hotels that are integrated with other F&B, commercial and retail offerings for decades. The recent opening of The Eve Hotel Sydney proves this model remains highly successful and we cannot wait to open the Hannah St. Hotel on Melbourne’s Southbank at the end of the year.
This will be preceded by a number of exciting new announcements of properties that will be joining the TFE Hotels portfolio, all of which provide one-of-a-kind experiences for guests, becoming destinational, in their own right. On the back of the successful transition of New Zealand’s Heritage Hotels portfolio of properties to TFE Hotels’ operation last December, we are excited to soon announce a number of new projects in New Zealand, as we continue to focus on this key market which, along with our ongoing growth in Australia, will ensure we continue to deliver market-leading returns to current and new owners.
TRAVEL + LEISURE CO.Barry Robinson, President and Managing Director, International Operations
Developers and owners are increasingly searching for higher yield from their assets. We are seeing desire to go beyond mixed-use properties with residences and hotel rooms to alternatives like shared ownership.
As we mentioned at AHICE 2025, shared ownership is no longer limited to high-end assets like private jets, but expanding across industries – including art, fashion and residences. Younger generations want goods and experiences without being locked in, and freedom from obligations like maintenance and depreciation. Our proven approach to mixed-use provides upfront capital and ensures long-term quality.
Shared owners are part of a holiday club, where annual fees are allocated to manage and improve club properties, ensuring consistently high standards. Shared ownership rooms typically enjoy predictable high occupancy of more than 85% – which is an added benefit to any economy that we operate in by providing consistent additional spend within various communities.
According to projections by the American Resort Development Association (APRDO), the North American industry body, the shared ownership sector is expected to grow by 6.2% annually through to 2035.
Property and construction costs are continuing to rise in Australia. Increasingly, developers and owners are navigating this by acquiring and refurbishing older properties that can be repositioned, or creatively retrofitting other building types into hotels.
We have a track record of similar projects with regional property acquisitions – for example, refurbishing Club Wyndham Airlie Beach and converting Club Wyndham Ballarat, an historic manor, from an events-focused property. We have scheduled our most recent acquisition, Club Wyndham Mission Beach, for a multi-million-dollar refurbishment to prepare for more guests.
The consistent occupancies of shared ownership empower us to expand where others may not. A prime example is Club Wyndham Dinner Plain, which we bought as a winter-only lodge and expanded to run year-round, while acquiring 30 additional chalets which complemented the lodge and bar and restaurant facilities.
We remain interested in acquiring the right assets in the South Pacific region that will complement our existing portfolio.
TRILOGY HOTELSScott Boyes, Chief Executive Officer
There are exciting times ahead as we navigate through 2025. Australia’s hotel sector, whilst choppy, continues to demonstrate remarkable resilience with national occupancy rates at 71% and RevPAR up 3.8% to $171. Despite ongoing challenges, this growth creates a landscape ripe with both hurdles and opportunities.
Sydney leads the recovery charge with occupancy at 78% and RevPAR growing to an impressive $215, making this market our standout performer. Conversely, Melbourne and Hobart continue to face headwinds from supply increases and slightly softening domestic leisure demand.
In New Zealand, we see a similar dichotomy – Queenstown, Christchurch, and Rotorua benefit from returning international visitors. Auckland is grappling with increased room inventory, and Wellington is adjusting to reduced government spending.
Third-party management, stakeholder experiences, and technology integration are key trends reshaping our industry. Eco-certified properties are no longer niche but necessary, with major operators prioritising this. The premium/luxury segments continue to expand, particularly with branded residences attracting both domestic and international guests.
The premium and experiential hotel segments present compelling opportunities. Properties offering immersive experiences command premium rates as travellers increasingly value authenticity over standardisation. We’re also seeing strong performance in market mix diversity, where segments combine to offset the ups and downs of current economic and global conditions.
After subdued transaction activity in 2024 ($1.25 billion in transactions to October), we anticipate increased momentum in 2025 as interest rates plateau. While construction costs have tempered new developments, this has heightened the value of existing assets, particularly in supply-constrained markets. In addition, developers are also sourcing creative ways to deliver economically viable hotel projects.
Introducing 60 new international flight routes enhances Australia’s connectivity to key Asian markets, North America, and Europe, further strengthening investment fundamentals for strategically positioned assets.
For Trilogy Hotels, we are excited and optimistic about the future. We remain focused on markets demonstrating strong performance outcomes for owners while selectively exploring opportunities in emerging destinations where we can leverage these evolving consumer preferences and travel patterns.
WYNDHAM HOTELS & RESORTSMatt Holmes, VP of Business Development Southeast Asia, APAC
We see the growth in franchising as a huge opportunity for Wyndham Hotels and Resorts. As the world’s largest hotel franchisor, we know this market better than anyone. Our brands and systems are highly geared towards this segment, and we are well positioned to capitalise on this growth through a combination of strategic partnerships with key third party operators, as well as directly to owner/operators through our Owner First commercial approach.
We are definitely seeing more consolidation in the industry. This is relevant to independent owner/operators of single assets to portfolios. Independent brands are now able to maintain their independence and leverage off the brand equity they have built, yet also be part of a global company such as Wyndham with a large distribution engine behind us, large loyalty program, extensive marketing calendar, sales agents dotted all over the globe, best in class systems, and economies of scale buying power with key suppliers, which we pass on the benefits in full. Independent brands/owners can now have the best of both worlds.
We would like to do more in the lifestyle space. It’s been a buzz segment for some time now. Our TRYP by Wyndham brand is a flexible way for owners to enter this space without breaking the bank on build/ refurbishment and design costs. There is still white space for us within key capital cities as well – particularly within Australia which is a key area of focus for us at the moment.
