Australia and New Zealand See Surge in Hotel Investments Amid Tourism Recovery

According to a recent report by Global Asset Solutions, the hotel sector in Australia and New Zealand is experiencing a significant upturn, driven by increased international investor interest and a rebound in tourism.

The hotel industry in Australia and New Zealand is witnessing a robust recovery, catalyzed by a resurgence in tourism and heightened interest from international investors, particularly from Asia and Europe. This insight comes from the “Australia vs. New Zealand Market Comparison 2025” report by Global Asset Solutions.

The analysis highlights several factors contributing to the surge in hotel transactions in both countries. Notably, the cost of debt has become more affordable, and the currencies in both countries have weakened, making investments more attractive to foreign buyers. The return of Asian investors, who had previously focused on markets like the UK, Europe, and Japan, is particularly noteworthy.

In terms of tourism metrics, both Australia and New Zealand have experienced growth in visitor nights. For the 2022-23 financial year, Australia saw international visitor nights and trip spending exceed 2019 figures by 2% and 3%, respectively. The forecast suggests that by the end of 2025, international visitation will surpass pre-pandemic levels, reaching an estimated 9.5 million trips. By 2028, this number is expected to climb to 12.1 million visits, marking a 27% increase from 2019, with an annual growth rate projected at 12.9% over the next five years.

This rebound in tourism has spurred significant developments in hotel construction. In 2024, Australia added approximately 1,800 hotel rooms, with a focus on Melbourne, and there are 5,700 more rooms in the pipeline. Meanwhile, New Zealand added 850 new rooms last year, with another 1,600 currently under construction.

The transaction market for hotels also showed signs of acceleration. In the first quarter of 2025, Australia recorded $676 million in hotel sales, doubling the volume seen in the same period in 2024. In New Zealand, a notable transaction included the $180 million sale of the 139-room InterContinental Auckland Hotel by Precinct Properties to Hotel Properties Limited in March. This sale contributed to a first-quarter deals volume of $250 million in New Zealand, surpassing the total transaction volumes of 2023 and 2024 combined, and nearly matching the total for all of 2022.

Alex Sogno, CEO of Global Asset Solutions and co-author of the report, commented on the trends, noting the growing popularity of Australia and New Zealand as travel destinations. The increasing visitor numbers are boosting demand for hotel accommodations. Sogno also pointed out the rising interest from international groups looking to expand their presence in the region through acquisitions and the growing trend towards franchises, allowing owners to maintain control over their properties while benefiting from professional asset management.

In summary, the hotel market in Australia and New Zealand is poised for continued growth, fueled by a recovery in tourism and active international investment, signaling a robust period ahead for the hospitality industry in these regions.

Discover more at Global Asset Solutions.