New international flights tipped to fuel hotel boom across Australia
Australia’s hotel industry is gearing up for a major boost, with a wave of new international flight routes set to land more visitors – and more hotel bookings – across the country.
CBRE’s latest research suggests the influx of more than 55 new routes could generate demand for up to 1.9 million additional hotel room nights annually, adding to the 10,500 existing international flights already arriving in Australian capital cities each year.
“Increased capacity from core markets including China, India, Southeast Asia, North America and the Middle East is expected to drive a continued recovery in international arrivals, reinforcing aviation’s role as a critical lever for tourism and hotel sector growth,” said CBRE’s head of hotels research Ally Gibson.
CBRE forecasts a 3.4% lift in average national occupancy, with Sydney set to see the biggest gains. Thirteen new flight routes into the Harbour City are expected to deliver 390,000 extra arrivals and around 542,000 room nights by late 2026.
Melbourne, which has battled a hotel oversupply, will benefit from 409,000 extra room nights linked to 12 new routes. Meanwhile, Perth is tipped for a 4% occupancy jump, driven by 339,000 room nights from nine new services, mostly out of the Middle East and Southeast Asia.
Brisbane could also enjoy a 4% lift from 267,000 room nights across eight new routes. Cairns and Adelaide will share in the growth too, with expected boosts of 104,000 and 102,000 room nights respectively.
CBRE Hotels’ Troy Craig noted that cities like Brisbane, Perth and Cairns are “particularly well positioned” due to limited hotel supply.
“Meanwhile, the gateway markets of Sydney and Melbourne, underpinned by strong corporate and leisure-based demand and major event schedules, are expected to sustain elevated levels of international arrivals and translate this into continued performance growth,” Craig said.
The report – From Runways to Room Nights – used detailed flight data including airline, origin, frequency and aircraft type to forecast the impact on hotel demand.
Jonathan Jackson, 10th July 2025
