Sydney hotel supply to grow by 5.1% 

Thanks to six new hotels currently under construction.

According to a JLL report, a total of 2,270 rooms have opened in Sydney since 2020, which represents 10.4% of the total room stock. No new hotels opened over the first half of 2024, after a total of 816 rooms opened in 2023, which represents a 3.5% increase in total room stock.

There are six new hotels under construction in the CBD and surrounding suburbs, which will add 1,173 rooms, or 5.1%, to the existing stock. The next anticipated hotel opening will be in September with TFE’s The Eve Surry Hills Village (102 rooms).

Here’s more from JLL: 

As of YTD June 2024, RevPAR in Sydney increased notably from the prior year, and has exceeded pre-COVID-19 levels (YTD June 2019). Recovery is driven by continued growth in ADRs and a steady uplift in occupancy.

Transaction volume totalled AUD 397.1 million over H1 2024 and included a handful of notable sales such as the Courtyard by Marriott North Ryde, Novotel Parramatta, InterContinental Double Bay, Woolstore 1888 by Ovolo and Holiday Inn Bondi Junction.

Outlook: Demand continues to improve, supporting RevPAR growth

Ongoing recovery in corporate/MICE demand and the resurgence of inbound visitors and Chinese tourists are anticipated to drive demand. Occupancy rates are also expected to continue rising as the significant growth in ADR begins to stabilise.

Despite the current adverse domestic and global economic conditions and rising borrowing costs, investor interest in Sydney hotels remains strong as a result of favourable underlying fundamentals and the tightly held nature of the market.

Note: Sydney Hotels refers to all grades of accommodation and includes both hotels and serviced apartments.