Sydney hotel stock to grow by 1,071 rooms

There are five new hotels currently under construction.

According to a JLL report, the only supply completion in the first half of 2025 was The Eve Surry Hills Village, adding 102 rooms to the market. Additionally, there are five hotels currently under construction in Sydney’s CBD and fringe suburbs, set to add 1,071 new rooms, or 4.5% to existing stock.

“Noting that whilst the recovery in hotel trading continues, the cost of debt and land prices remain high—a challenging environment for future commencement of standalone and mixed-use hotel development,” the report said.

Here’s more from JLL:

Strong trading performance continues throughout the second quarter

Sydney’s hotel market continued to build momentum on a strong Q1, driven mainly by occupancy growth. Sydney occupancy levels are some of the highest in the country. ADR growth, however, has moderated.

Year-to-date transaction volumes in Sydney totalled AUD 363.0 million, including the Sir Stamford at Circular Quay, which sold for residential conversion, Sydney Potts Point Central Apartment Hotel and SKYE Suites Sydney.

Outlook: Sydney hotels poised for further growth in 2025

Robust demand growth is anticipated over the remainder of 2025, supported by a significant events calendar (e.g., Vivid Sydney, SXSW and NYE Fireworks), improving domestic and international visitation and a corporate/MICE rebound.

A combination of positive trading growth, strong fundamentals and a robust market outlook continues to drive investor interest for Sydney hotels, with annual transaction volumes anticipated to be heavily reliant on the opportunities that come to market this year.