{"id":254275,"date":"2025-07-25T05:15:00","date_gmt":"2025-07-24T22:15:00","guid":{"rendered":"https:\/\/www.ttrweekly.com\/site\/?p=254275"},"modified":"2025-07-25T06:05:07","modified_gmt":"2025-07-24T23:05:07","slug":"what-10500-new-flights-mean-for-australian-hotels","status":"publish","type":"post","link":"https:\/\/www.ttrweekly.com\/site\/2025\/07\/what-10500-new-flights-mean-for-australian-hotels\/","title":{"rendered":"What 10,500 new flights mean for Australian hotels"},"content":{"rendered":"\n
SYDNEY, 25 July 2025: International flight routes are set to supercharge Australia\u2019s hotel sector, potentially creating demand for up to 1.9 million room nights annually, according to a recent CBRE study.<\/p>\n\n\n\n
CBRE\u2019s \u2018From Runway to Room Nights\u2019 report highlights that 56 new routes have added 10,500 annual flights to key Australian cities, marking a significant shift in the country\u2019s inbound travel capacity.<\/p>\n\n\n
CBRE\u2019s Head of Hotels Research Ally Gibson said this air connectivity would help drive a new phase of recovery for Australia\u2019s hotel sector and have direct implications for hotel performance.<\/p>\n\n\n\n
\u201cIncreased capacity from core markets including China, India, Southeast Asia, North America and the Middle East is expected to drive a continued recovery in international arrivals, reinforcing aviation\u2019s role as a critical lever for tourism and hotel sector growth,\u201d Gibson said.<\/p>\n\n\n\n
\u201cAs these new services mature and inbound visitation continues to recover, the uplift in demand is expected to increase occupancy and RevPAR levels across key markets as Australia\u2019s hotel development pipeline enters a sustained period of limited supply, driven by escalating construction costs and productivity constraints.\u201d<\/p>\n\n\n\n
CBRE\u2019s analysis takes into account each route by airline, origin, frequency and aircraft type. This was used to estimate new international short-term arrivals and translate them into projected hotel room night demand and occupancy impacts.<\/p>\n\n\n\n
By the end of 2026, CBRE estimates that these new routes will create demand for around 1.9 million hotel room nights nationally, with the potential to lift Australia\u2019s hotel occupancy by an average of 3.4%.<\/p>\n\n\n
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CBRE Hotel\u2019s Troy Craig noted: \u201cSupply-constrained markets such as Brisbane, Perth and Cairns are particularly well-positioned to benefit, with new flight routes translating directly into performance upside. Meanwhile, the gateway markets of Sydney and Melbourne, underpinned by strong corporate and leisure-based demand and major event schedules, are expected to sustain elevated levels of international arrivals and translate this into continued performance growth.\u201d<\/p>\n\n\n\n
CBRE\u2019s analysis highlights that Sydney is expected to see the most significant uplift in demand, with 13 new flight routes projected to generate around 390,000 additional short-term arrivals and drive an expected 542,000 room nights by the end of 2026.<\/p>\n\n\n\n
Melbourne will benefit from 12 new international routes, adding around 306,000 short-term arrivals and an expected 409,000 room nights by the end of 2026. As hotel supply begins to moderate, the increase in demand is expected to help absorb recent additions and drive improved performance momentum.<\/p>\n\n\n\n
With nine new direct services, primarily from Southeast Asia and the Middle East, Perth is forecast to experience the highest percentage growth in international arrivals, with 298,000 new short-term arrivals expected to generate an additional 339,000 room nights.<\/p>\n\n\n\n
Brisbane\u2019s new flights align with strategic inbound travel growth and capacity gains following the completion of its second runway. Eight new routes from various origins, including North America and Asia, are expected to generate approximately 214,000 new short-term arrivals and create demand for around 267,000 room nights.<\/p>\n\n\n\n
With four new international routes including direct flights from San Francisco and Auckland, Adelaide is set to welcome around 143,000 additional short-term visitors, translating into demand for an expected 102,000 room nights.<\/p>\n\n\n\n
Cairns is meanwhile expected to continue its evolution into a year-round premium leisure market, with seven new flight routes set to deliver around 120,000 new short-term arrivals, generating an expected 104,000 room nights. <\/p>\n\n\n\n
About CBRE Group Inc<\/em> CBRE Group Inc, a Fortune 500 and S&P 500 company headquartered in Dallas, is the world\u2019s most extensive commercial real estate services and investment firm (based on 2024 revenue) serving clients in more than 100 countries. <\/em> Visit the website at www.cbre.com<\/a>.<\/p>\n\n\n\n
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