A calendar of citywide events significantly contributes to the demand for hotel accommodation in Australia’s hotel markets, according to a new study by CBRE. The research, titled “Needle Movers: The Top Events Driving Australian Hotel Demand,” examined the impact of 15 major sporting, cultural, and business events in Sydney, Melbourne, and Brisbane in 2023/2024 on hotel room demand and revenue.
The Sydney Harbour NYE Fireworks event in 2023 was identified as the most profitable, resulting in a 32% surge in occupancy and a 129% increase in the average daily rate (ADR). The event generated an additional $51 million in room revenue. The Australian Grand Prix in Melbourne followed closely, bringing in an extra $50 million in room revenue. In Brisbane, the 2024 NRL Magic Round was the most lucrative event, generating $14 million in additional room revenue.
Ally Gibson, CBRE’s Head of Hotels Research, emphasized the significance of a diverse array of events, including high-profile, local, and off-season events, in ensuring steady demand for the hotel sector. She noted that high-profile events, despite their shorter durations, have a significant impact on rate growth and occupancy demand. She further highlighted the importance of strategic planning and diversification of event schedules to maximize long-term benefits for the hotel sector and the broader economy.
Troy Craig, CBRE’s Regional Director of Hotels Valuation & Advisory, indicated an optimistic outlook for the events in Sydney, Melbourne, and Brisbane for 2025. He mentioned that this would help maintain hotel demand throughout the year, stimulate long-term investment, and enhance employment in the hospitality sector.
Craig highlighted Sydney’s standing as a key destination for major events because it is a leading cultural, business, and tourism hub. In 2025, the city is expected to host a diverse range of international and local events. Melbourne is also gaining traction with global conferences, increasing the demand for accommodation. Brisbane is enhancing its reputation as a premier event city, becoming a significant player in Australia’s tourism and hospitality sectors.