Behind the Deals CBRE and the ANZ Luxury Hotel Market

ANZ luxury hotels are outperforming the broader market. Demand is growing faster, rate
premiums are widening and recent supply has been absorbed with occupancy remaining
stable. As the development pipeline thins, established luxury assets are becoming
increasingly scarce.

CBRE has advised on 55% of all ANZ luxury hotel transactions by value since 2021, giving us a
direct view of the capital, buyers and assets shaping the market.

Key Takeaways:

Pricing has reset: Median transaction price per key for luxury hotels has increased 81%, from approximately $396,000 per key in 2011-2014 to $718,000 in 2023-2026 year to date.  
Luxury is outperforming: Luxury demand grew at a 2.9% CAGR between 2019 and 2026, more than twice the 1.3% recorded across the broader hotel market. Australia’s average luxury ADR premium increased 53%.
New supply has been absorbed: Despite 20 new luxury hotels adding 3,517 rooms since 2020, occupancy remained broadly stable at 78%-79%.
The next cycle will be supply constrained: A further 1,979 luxury rooms across 11 hotels are under construction, but delivery is concentrated in 2026 and 2027. Beyond 2028, the confirmed pipeline thins materially as development feasibility tightens.
Luxury is evolving: Global brands, independent operators, conversions and branded residences are expanding the sector, supported by a growing high-value consumer base and increasing demand for experience-led stays.