Sydney added 2270 rooms over the same period, a 10.4 per cent increase.
Major events such as the grand prix and the Comedy Festival have bolstered bookings in Melbourne, leading to a record number of hotel rooms selling in March, more than during Taylor Swift’s blockbuster concert series, which filled most of the city’s rooms in February last year.
‘While there’s uncertainty, a bit of concern in some areas around the world, Australia remains a highly attractive place for people to travel to.’
Adrian Williams, Accor’s Pacific chief operating officer
Another major boost to occupancy was April’s Amway China leadership seminar in Melbourne, which drew 16,000 of the multilevel marketing company’s top sellers for five days of seminars, tours, and a gala dinner.
M3 Property’s hotels and leisure director, Antony Schober, said international tourist numbers were returning to pre-pandemic levels, but Melbourne was attracting the lion’s share of domestic tourism in Australia.
“Occupancy rate per room for the Melbourne market in January 2025 was 74.63 per cent, which is a 3 per cent year-on-year increase. Revenue per room has also gone up, with a 9 per cent year-on-year increase,” Schober said.
Another global player, IHG Hotels & Resorts, is also on the move, signing deals last week with property investors Salter Brothers to revive the upmarket Regent brand in Australia.
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IHG’s InterContinental in Melbourne will become a Regent hotel in 2030. The group’s Crowne Plaza hotel in Docklands will take over the InterContinental brand, along with Sydney’s Coogee Beach Crowne Plaza and Crowne Plaza Canberra.
Williams said international turmoil linked to US President Donald Trump’s tariffs and the conflicts in Ukraine and Gaza was enhancing Australia’s image as a safe and attractive travel destination.
“While there’s uncertainty, a bit of concern in some areas around the world, Australia remains a highly attractive place for people to travel to. We will see increased growth as a result of that,” he said.
Airbnb Australia and New Zealand country manager Susan Wheeldon said while affordability was top of mind for many people, Australians had not given up travelling.
“When it comes to international travel this winter, Italy is having a resurgence following The White Lotus, while those looking closer to home are heading to Japan, Vietnam and Indonesia – all relatively affordable overseas destinations,” Wheeldon said.
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