International hotel investors are waking up to the opportunities presented by the markets of Australia and New Zealand.
Growing visitor numbers have spurred new hotel development, and a greater interest from overseas operators and investors. A new report on the two country markets from Global Asset Solutions details the rising market, and reactions to it.
Visitor numbers are building
In Australia, international visitor numbers are expected to grow to 9.5 million during 2025, ahead of the previous pre-pandemic peak in numbers. By 2028, that is expected to build to 12.1 million visits, as growth is estimated to rise by 12.9% over a five year period.
The market is responding to that growing demand. In Australia, the sector delivered around 1,800 new rooms during 2024 and there are around 5,700 rooms confirmed in the development pipeline. In New Zealand, after 850 rooms launched in 2024, there is almost double that number under construction.
In 2024, the Australian market stood at 310,000 rooms, with a reported occupancy averaging around 68-72% for the year. New Zealand, a market with just 50,000 rooms, performed more strongly with a 70-75% occupancy rate for the year.
“Australia and New Zealand are growing in popularity as destinations for both domestic and international travellers,” said Alex Sogno, CEO of Global Asset Solutions. “These rising numbers are feeding the demand for hotels across both countries. We are seeing increased interest from international groups, particularly from Europe, looking to build scale in the region by acquiring portfolios and hotel operating platforms.”
Investor interest is borne out by figures from the transactions market. The first quarter of 2025 saw AUD676 million of hotel sales in Australia, double the volume of the same quarter in 2024. In New Zealand, the AUD180 million sale of the InterContinental Auckland boosted deal volumes, while the recent listing of a seven hotel portfolio for sale by NZ Hotel Holdings could see AUD600 million of assets change hands in coming months.
Among hotels under construction in Australia are many from the international brand groups. For Marriott, these include a Moxy in Sydney, and a Courtyard by Marriott at Sydney airport. Hilton, too, is focused on growth in the city, with Waldorf Astoria One Circular Quay under construction, while Hyatt is developing a 172 room Caption by Hyatt hotel, for opening in late 2025.
International brands build their presence
IHG Hotels and Resorts has built strong developer partnerships in Australia, and as a result has a strong pipeline of properties under construction. These include the InterContinental Brisbane, Voco Gosford, and Crowne Plaza hotels in Geelong and Melbourne.
With a strong local brand, Mantra, the Accor group has always looked to maintain a strong presence across Australia and New Zealand. Accor currently has hotels including Mercure Campbelltown, Hyde Perth and Mantra Melbourne airport under construction. And in New Zealand, work is under way to create Pullman Hamilton, a refit of the city’s tallest building that will be completed in the first half of 2026.
