Demand has remained resilient in NSW hospitality venues, despite tough economic conditions, cost pressures and global uncertainty travel, the state’s peak accommodation body says.
About 150 Sydney general managers and other hotel executives braved the wet weather to meet at the Accommodation Australia NSW Hotel Market and Economic Outlook Update at the Fullerton Hotel in Sydney.
Accommodation Australia NSW GM Stacey McBride said despite the short-term impacts of events in the Middle East, NSW (and Sydney in particular) was continuing to attract visitors and investment.
“Despite the volatile occupancy in the short-term, the overall mood from the expert speakers was cautious optimism and a strong belief demand inevitably bounces back from these events,” she said.
William Buck chief economist Besa Deda spoke to the gathering about the broader economic outlook, including consumer and business confidence, household spending, labour market conditions, interest rate expectations and the implications of the Federal Budget for businesses and investment.
While Paul Hammond, Sales Pacific at STR, a CoStar Group Company, said while short-term volatility remained, the Sydney hotel market continues to be supported by strong demand, on-going rate growth, major events and moderating supply growth across the market.
Senior Associate – Investment Sales Hotels and Hospitality Group at JLL, Chris Boyd, said Investor interest in Australian hotels remained strong, with Australia continuing to attract domestic and international capital due to its reputation as a stable and transparent investment market (although investors remain mindful of broader economic conditions).
Boyd told the crowd new hotel supply remained relatively constrained across several major Australian markets and elevated construction costs and financing challenges continue to influence the pace of future development.
Finally, Market Team Manager at booking.com, Antony Frino, said AI and digital tools were increasingly shaping how travellers research and book trips, with sustainability and experience-led travel continuing to influence destination and accommodation choices.
Frino said Sydney continues to perform strongly as a winter destination, ranking as the second most searched domestic winter destination and fifth overall when domestic and international searches are combined.
There were seven NSW destinations appearing in Booking.com’s top 30 domestic winter search destinations.
