Australia: Key City Hotel Market Outlook & Insights

This report by Horwath HTL in Australia provides an outlook for ten key city markets across Australia, assessing the recovery made to date in 2021 and the outlook for future growth.

The data as published in the report is based on the economics forecast by Deloitte Access Economics December 2021 quarter, tourism forecast by Tourism Research Australia in December 2021, and historical hotel performance from STR as at December 2021.

At the time of the data release, 80% of the eligible Australian population had been double vaccinated, and the international border reopening in February was announced. At the same time, Omicron cases peaked in Australia around February 2022, while hotel recovery continued to be slow after NSW and VIC exited the lockdown at the end of October 2021.

The recovery timeline for most key cities is primarily consistent with our previous September 2021 Edition. Tourism Research Australia and Deloitte Access Economics pushing back their domestic and international tourism recovery by approximately one year is the primary driver of the softening in our outlook for Sydney, Melbourne, and Canberra.