Australia Luxury Hotels and Resorts Market Size, Share, Growth and Forecast, 2025-2035

Returning visitors and new brands lift top-end stays

The Australia luxury hotels and resorts market was valued at USD 4.78 billion in 2025 and is projected to increase from USD 5.11 billion in 2026 to USD 9.22 billion by 2035, registering a CAGR of 6.77% during 2026–2035. Demand comes from Australian households on leisure, wellness and celebration trips, from international visitors who spend more per night than before the pandemic, and from companies that book executive travel, meetings and incentive programs. New South Wales held the largest regional share, 30.9% in 2025, because Sydney is the main international gateway and carries the deepest supply of harbor-front properties. Queensland is the fastest-growing region at 7.31% a year, as new branded openings on the Gold Coast add rooms. In turn, global groups are bringing lifestyle labels such as Mondrian and 25hours into Australia, which widens choice for younger high-spending guests.

Which top-end city properties and resorts does the estimate cover?

The estimate measures room, food, beverage, spa and event spending at five-star and lifestyle luxury properties in Australia. It covers metropolitan properties in the state capitals, coastal resorts on beaches and islands, and experiential lodges in wine, wildlife, alpine and outback settings, whether booked direct, online or through advisers and corporate agents.

The estimate excludes midscale and economy properties, serviced apartments without a luxury brand, cruise ships, casino gaming spend and short-term rental homes. The value chain runs from property owners and developers through brand operators, management companies and franchisees to booking platforms, travel advisers, corporate buyers and the domestic and international guests who stay.

City properties lead while experiential stays grow fastest

Why do metropolitan properties lead product demand?

Based on product category, the market is categorized into metropolitan luxury hotels, coastal luxury resorts and experiential luxury resorts. Metropolitan Luxury Hotels led with a 52.0% share of 2025 value, because city properties serve leisure, corporate and event guests across the whole year. Experiential Luxury Resorts grow fastest at 7.35% a year, as travelers pay more for wildlife, island and alpine stays.

How do resident and international guests split spending?

Based on customer type, the market is categorized into Australian resident leisure buyers, international leisure buyers, corporate buyers and public and nonprofit buyers. Australian Resident Leisure Buyers led with a 46.0% share of 2025 value, because domestic travelers fill rooms on weekends and holidays. International Leisure Buyers grow fastest at 7.68% a year, as long-haul visitors return and stay longer.

Why do leisure and wellness stays lead purchase occasions?

Based on purchase occasion, the market is categorized into leisure and wellness stays, wedding and family celebrations, business travel and meetings and incentives. Leisure and Wellness Stays led with a 51.0% share of 2025 value, because holiday trips drive most room nights. Meetings and Incentives grow fastest at 7.14% a year, as companies reward staff with group trips and events.

How are booking channels changing for top-end stays?

Based on distribution channel, the market is categorized into hotel direct booking, online travel agencies, luxury travel advisors and corporate and group intermediaries. Hotel Direct Booking led with 41.0% of 2025 value, because loyalty members book through brand apps and websites. Luxury Travel Advisors grow fastest at 7.34% a year, as long-haul guests use advisers to plan complex trips.

Visitor spending, events and new openings lift room demand

How does international demand recovery lift top-end room value?

International demand recovery lifts top-end room value, because long-haul visitors stay longer and spend more per night than domestic guests. International visitors spent $39.2 billion in Australia in 2025, up 19% on 2024 and 25% above 2019, according to Tourism Research Australia. Holiday travelers alone made 3.6 million trips and spent $12.9 billion, up 18% on the previous year. Visitor arrivals also reached 9,101,120 in 2025-26, up 8.3% on 2024-25, according to the Australian Bureau of Statistics. New Zealand remained the largest source with 1,422,790 arrivals, slightly above its 2018-19 level. As a result, international leisure buyers grow at 7.68% a year, the fastest customer rate.

Why do major events and gateway cities support rate growth?

Major events and gateway cities support rate growth, because tournaments and conferences fill top-end rooms at higher prices. The AFC Women's Asian Cup ran from March 1 to March 21, 2026, in Perth, the Gold Coast and Sydney, with 12 teams and $15 million in federal support. U.K. arrivals reached 751,420 in 2025-26, 104.6% of the 2018-19 level, which brings long-haul guests through Sydney and Melbourne. EVT lifted hotel occupancy to 82.1% in the year to June 2026 from 80.3%, while its average room rate rose to $215 from $206. In turn, meetings and incentives grow at 7.14% a year, the fastest occasion rate.

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How does premium product renewal widen the guest base?

Premium product renewal widens the guest base, because new and refurbished properties give travelers fresh reasons to pay higher rates. Accor opened the first Mondrian in Australia at Burleigh Heads and brought Hyde Melbourne Place and 25hours Hotel The Olympia Sydney to market in 2025. 1 Hotel Melbourne opened on the Yarra River in June 2025 with 277 rooms, and InterContinental Brisbane opened on July 1, 2025, with 319 rooms. Hyatt announced in September 2024 that the 202-room Andaz Gold Coast would join its 10 hotels in Australia. As a result, metropolitan luxury hotels hold a 52.0% share of 2025 value.

Why does the Gold Coast resort pipeline add new supply?

The Gold Coast resort pipeline adds new supply, because global brands are building waterfront properties for domestic and Asian visitors. Marriott plans a 150-room Ritz-Carlton at Mariner's Cove as part of a $480 million waterfront project, with a 512 square meter ballroom for weddings and events. Marriott also signed Marina Mirage Gold Coast, a Luxury Collection Resort, on June 28, 2024, with 122 keys planned for 2027. Mondrian Gold Coast added 208 studios, suites and homes at Burleigh Beach. In turn, coastal luxury resorts keep steady demand, as couples and families book spa and wellness retreats by the beach and pay more for suites with ocean views.

Lifestyle brands and longer stays reshape premium travel

How is the rise of lifestyle luxury brands changing demand?

The rise of lifestyle luxury brands is changing demand, because younger high-spending guests want design, nightlife and food more than formal service. Accor said its 2025 Pacific openings included major brand debuts, and the group operates more than 400 hotels in the Pacific region. 1 Hotel brought its nature-led format to Melbourne with 277 rooms, while Hyatt planned its first Andaz in the country with 202 rooms at Broadbeach. Spending on high-end travel is shifting toward social spaces, rooftop bars and wellness. Hyde Melbourne Place and 25hours Hotel The Olympia also target guests who want art, music and late dining. As a result, online travel agencies grow at 7.34% a year, as guests compare new labels.

Why is the shift to longer, higher-spend trips notable?

The shift to longer, higher-spend trips is notable, because visitors now stay more nights and buy more services during each stay. International visitors spent 312.7 million nights in Australia in 2025, up 6% on 2024 and 14% above 2019. Trips were still 5% below 2019, which shows that spending per trip rose faster than visitor numbers. International tourism receipts reached $47.95 billion in 2019, according to World Bank data, which sets the pre-pandemic benchmark that spending has now passed. Education visitors also spent $14.5 billion in Australia in 2025, up 25%, which brings more family visits to students. In turn, leisure and wellness stays keep a 51.0% share of 2025 value, as guests add spa, dining and tours.

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Can Western Sydney and secondary gateways open new demand?

Western Sydney and secondary gateways open new demand, because growing business districts outside the main city centers lack top-end rooms. Marriott signed Sydney Marriott Hotel Parramatta on May 1, 2025, with 279 rooms due in mid-2027, its fifth Marriott Hotels property in Australia. EVT also plans to open QT Parramatta with 265 rooms in early 2027. Corporate travelers made 758,000 business trips into Australia in 2025, which supports weekday demand in business districts. These suburban centers also gain from population growth and new transport links. As a result, owners that add premium rooms near offices, stadiums and conference and exhibition venues can capture new corporate and event bookings.

Is there room to grow experiential nature and alpine stays?

Experiential nature and alpine stays have room to grow, because travelers pay premiums for wildlife, island and mountain settings. The Lodge Wadjemup on Rottnest Island welcomed its first guests with 109 rooms, while Monarto Safari Resort in South Australia opened with 78 rooms and 20 glamping tents planned. EVT reported that Thredbo achieved EarthCheck Platinum certification, the first resort in Australia to do so, and won a best ski resort award for the 9th year. In turn, experiential luxury resorts grow at 7.35% a year, the fastest product rate, as guests seek unique stays. Such lodges usually sell packages that combine rooms, guided tours, meals and transfers at a single price.

Labor, costs and uneven visitor flows test operators

How do staff shortages affect service standards?

Staff shortages affect service standards, because top-end properties need chefs, spa therapists, butlers and front-office teams with strong skills. Many regional resorts struggle to house and keep workers in remote areas. As a result, some operators limit restaurant hours or room inventory during peak seasons. Groups respond with staff housing, training academies and career paths across their wider hotel networks. Some also recruit through working holiday programs to fill seasonal roles in coastal and alpine areas.

Why do high building costs slow new openings?

High building costs slow new openings, because luxury properties need premium materials, large public spaces and complex services. Several projects announced years ago are still moving through construction and approvals. In turn, owners face higher debt costs before the first guest arrives, which delays some openings. Developers respond by mixing hotels with residences, retail and event space to share costs across the whole site. Others convert existing buildings, which shortens construction time and lowers the cost of each new room.

How do uneven international flows create risk?

Uneven international flows create risk, because some source markets have recovered faster than others. Arrivals from China reached 78.7% of the 2018-19 level in 2025-26, while U.K. arrivals were already above it. As a result, properties that relied heavily on Chinese groups face softer demand. Operators respond by widening sales to India, the United States and Southeast Asia, while building stronger domestic loyalty programs. Many also add Mandarin-speaking staff and payment options to win back independent Chinese travelers.

Why does reliance on booking platforms squeeze margins?

Reliance on booking platforms squeezes margins, because online travel agencies charge commissions on every room they sell. Smaller independent luxury properties depend on these platforms to reach overseas guests. In turn, they keep less of each booking than branded properties with large loyalty programs. Operators respond with member rates, direct booking perks and partnerships with luxury travel advisers. Some independent lodges also join global marketing collections that give them access to loyalty members and advisers.

Sydney leads as the Gold Coast pipeline lifts Queensland

Why does Sydney give new South Wales the largest share?

New South Wales held a 30.9% share of 2025 value and grows at 6.71% a year, because Sydney is the main gateway for long-haul visitors and corporate events. Crown Sydney at Barangaroo opened in late 2019 with about 350 rooms on the harbor, which raised the top end of the city market. The 25hours Hotel The Olympia added a lifestyle option in 2025. In turn, new Parramatta signings for 2027 will widen premium supply in Western Sydney business districts.

What drives demand in western, southern and territory markets?

Western, southern and territory markets held a 27.1% share of 2025 value and grow at 6.61% a year, because Perth, Adelaide, Hobart and remote lodges attract nature and food travelers. The Lodge Wadjemup on Rottnest Island and Monarto Safari Resort near Adelaide add new experiential rooms. Perth also hosted Asian Cup matches in March 2026, while casino tourism supports city stays in the western capital.

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How does Victoria support city and event stays?

Victoria held a 23.0% share of 2025 value and grows at 6.56% a year, because Melbourne hosts major sporting, arts and business events through the year. 1 Hotel Melbourne opened in June 2025 with 277 rooms on the Yarra River, and Hyde Melbourne Place added a lifestyle option. However, growth is slower than in Queensland, as the city already carries a large supply of top-end rooms and fewer new resort sites.

Why is Queensland the fastest-growing region?

Queensland held a 19.0% share of 2025 value and grows fastest at 7.31% a year, because the Gold Coast and Brisbane are adding branded rooms. InterContinental Brisbane opened with 319 rooms on July 1, 2025, and Mondrian Gold Coast added 208 keys at Burleigh Beach. Ritz-Carlton and Luxury Collection resorts are also planned on the Gold Coast, which will lift top-end supply.

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Brand debuts, signings and events from 2024 to 2026

Booking, loyalty and guest data tools shape premium stays

• Brand apps and loyalty platforms let members book, check in and choose room features, which shifts bookings away from paid channels.
• Revenue management systems adjust room prices daily using demand, events and competitor rates, which lifts rates on peak nights.
• Guest data and CRM tools store preferences for pillows, dining and spa treatments, which helps staff personalize repeat stays.
• Mobile keys and contactless service let guests skip the front desk and order services from their phones, which frees staff for personal service.

Global brands and local groups compete for top-end guests

Competition is led by global hotel groups that operate or franchise top-end brands, alongside local groups that own their properties. Accor runs more than 400 hotels across the Pacific and brought Mondrian, Hyde and 25hours into Australia during 2025. Marriott International is expanding with Ritz-Carlton, Luxury Collection and Marriott signings on the Gold Coast and in Parramatta. Hyatt operates 10 hotels in Australia under five brands and planned its first Andaz at Broadbeach. Crown Resorts runs integrated resort hotels, including Crown Sydney at Barangaroo. EVT Limited owns and operates QT, Rydges and Thredbo, and lifted occupancy to 82.1% in the year to June 2026. Rivals compete on location, design, loyalty programs, food and beverage, spa offers and event space, while owners choose between management contracts, franchises and leases.

Companies profiled and their roles in this market

Credence Research view on Australian top-end stays

Credence Research's view is that Australian demand for top-end stays will grow strongly because international visitors are spending more than before the pandemic and new branded properties keep widening choice. City properties remain the core of the market, while experiential resorts and international guests add faster growth. The Gold Coast pipeline will lift Queensland's share through the decade. Operators that combine strong loyalty programs, event space and distinctive design should gain the most share, while independent lodges that offer unique nature experiences can hold premium rates.

How the Australian top-end stay estimate was built

The report uses 2025 as the base year on a calendar basis, and market values come from the Credence Research model. That model combines international visitor statistics, arrivals data, World Bank tourism receipts, event schedules, hotel opening and signing announcements, and operator occupancy and room rate data. Segment splits and regional growth rates are Credence Research estimates, while regional shares follow the client-defined split. Sources used are public reports, official statistics, trade press and company releases, and no interviews or surveys were used.

International travel and new openings carry growth to 2035

Top-end stay value is expected to reach USD 9.22 billion by 2035, a 6.77% CAGR during 2026–2035, as international visitors, events and new openings support demand. Growth should be strong through 2030 while new Gold Coast and Western Sydney properties open. After that, rising room rates, wellness spending and experiential stays will carry more growth. Weaker airline capacity or a global slowdown would soften demand, while new air routes would lift it. Operators with strong loyalty programs are expected to gain the most.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.