Q3 2026 Major Australian Hotel Markets Performance

This report tracks the performance of Australia's major hotel markets each quarter, covering occupancy, room rates, RevPAR, investment activity and the supply pipeline across Sydney, Melbourne, Brisbane, Perth, Adelaide and Hobart. It aims to give owners, investors and operators a clear view of how each market is trading and what is shaping hotel values.

In the year to September 2026, trading strengthened across the country, with RevPAR now above 2019 levels in every major market. Higher interest rates slowed investment activity in Q3, although yields have remained relatively stable.

Key Points

• National occupancy reached 74% in the year to September 2026, with ADR of $253 and RevPAR of $187, all higher than a year earlier.
• RevPAR is above 2019 levels in every major market, and room nights sold are at or near record highs.
• Sydney led all markets, with occupancy of 84% and record ADR and RevPAR of $346 and $291. RevPAR rose 8% and is 33% above 2019 levels. 
• Melbourne RevPAR rose 5% to a record $192, supported by the AFL Grand Final and the city's first NFL game.
• Brisbane held its strong position, with RevPAR of $199 sitting 74% above 2019 levels, the largest increase among the major markets.
• Perth RevPAR rose 10% to a record $220, driven by an 8% increase in ADR.
• Adelaide RevPAR also rose 10%, to $166, on higher room rates and a modest lift in occupancy. 
• Hobart RevPAR increased 7% to $176, with limited new supply supporting further occupancy gains.
• Hotel transactions reached $1.24 billion in the year to date, up 22%, although Q3 volume slowed to $142 million. Domestic buyers accounted for 60% of sales.
• The weighted average yield of 5.25% sits 0.4 percentage points above the cash rate, the narrowest spread since 2007.
• Elevated construction costs continue to constrain new hotel supply, supporting the values of existing hotels.