$75 million boost to hotel revenue from major footy events

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CBRE
Images by CBRE

The return of the British and Irish Lions Tour, NRL Grand Final in Sydney, and the AFL Grand Final in Melbourne all drew significant crowds driving record hotel demand and delivering more than $75 million of additional hotel revenue, new CBRE data shows.

CBRE’s Major Hotel Markets Performance Q3 2025 report features analysis of how five major events in Australia’s 2025 football calendar translated into exceptional hotel performance.

The report shows an increase across all key performance indicators for the sector nationally, with hotel occupancy sitting at 73%, Average Daily Rate (ADR) at $243 and Revenue Per Available Room (RevPAR) at $177.

The report also includes analysis of the Sydney, Melbourne, Brisbane, Adelaide and Perth markets.

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CBRE’s Australian Head of Hotels Research Ally Gibson noted the football game analysis highlights the importance of high-profile events for the hotel sector.

“The NRL Grand Final in Sydney is an excellent example of the positive flow-on events like this create for the hotel sector as well as the broader economy of a host city. This year’s grand final was the first to feature two out of town teams since 2017 and drew a crowd of 83,000 which in turn drove the highest hotel occupancy of the year at 96%,” Ms Gibson said.

“The event delivered the second highest ADR of 2025, behind New Year’s Eve, and generated an estimated $21 million uplift in hotel revenue over a three-day period,” Ms Gibson added.

CBRE Regional Director, Hotel Valuations, Troy Craig said, “The first British & Irish Lions tour in 12 years reignited international demand and filled hotels in key markets. Crowds of more than 100,000 in Melbourne, 80,000 in Sydney and 53,500 in Brisbane underpinned a $42 million uplift in hotel revenue across the three events.

“Looking ahead, we expect the upcoming Ashes Cricket Test will provide another opportunity for hotel markets, with expectations of continued strong event-driven demand,” Mr Craig added.

Looking at wider industry performance, in the 12 months to September 2025 occupancy gains accelerated across all major markets with Adelaide leading the uplift followed by Sydney, Melbourne and Perth. Sydney and Perth continue to hold the highest occupancy rates nationally.

Sydney outperformed all other major markets in the year ending Sept 2025, recording the highest occupancy at 83%, ADR at $325, and RevPAR at $269. RevPAR increased 7% YOY, supported by strong trading conditions and major events, particularly the British and Irish Lions Tour in August.

Melbourne recorded a 4% increase in occupancy in the year ending Sept 2025, supported by strong demand growth and a contracting new supply pipeline. This drove a 6% increase in RevPAR to a record $183. Occupancy reached 76%, the highest level since early 2020.

Brisbane’s hotel market continued its strong performance, reaching new highs in both ADR ($259) and RevPAR ($196). The city recorded the highest YOY RevPAR growth nationally at 11%, driven by a 10% increase in room rates and a modest 1% uplift in occupancy to 76%.

Adelaide’s occupancy rose 7% over the year supported by a strong calendar of major events. RevPAR lifted 5% to $153. ADR eased slightly from last year’s peak but it remains well above pre-pandemic levels, underpinned by resilient demand.

Perth remains one of the few markets where all key performance indicators exceed pre-pandemic levels. A 4% increase in occupancy and a 5% rise in ADR, saw the Perth market post the second highest gain in RevPAR of 9% YOY to a record $199. Occupancy sits at 80% with ADR at $249.