Sydney’s hotel stock to grow by 4.8% over the next two years

Over 1,100 rooms will be added to Sydney CBD’s hotel supply.

Sydney’s hotel sector is set for a notable expansion, with five hotels currently under construction in the CBD that will collectively add 1,151 rooms—equating to a 4.8% increase in existing stock over the next two years, according to a JLL report.

The report noted that two hotels opened during the final quarter of 2025, adding 283 new rooms to the market or 1.1% on existing stock. This saw the introduction of two new brands into the Australian market, with the 25hours Sydney and the Caption by Hyatt Central Sydney.

“Sydney’s hotel market sustained its strong momentum throughout the final quarter, boosted by major events such as the NRL Grand Final, Lady Gaga and Jimmy Barnes concerts, Sculpture by the Sea, SXSW, the Sydney Open and the New Year’s Eve fireworks. Occupancy continued to improve, nearing 2019 levels,” the report added.