With the decisions all but finalised on the stadium choices for Brisbane 2032, Queensland hotels are sprinting to the top investor’s wish list as an early flurry of 2025 deals further cements South East Queensland status as a must have.

2024 saw Queensland enjoy another stella year of transactional activity and the state has consolidated it’s position in the hierarchy of hotel transaction volumes, trailing only New South Wales, according to data from JLL. With over $330m of deals recorded in 2024, it was the third consecutive year that Queensland ranked second in the rankings. The first quarter has seen continued momentum and more is expected from the Sunshine State during the balance of the year.

Commenting, Adam Bury, Executive Vice President, JLL Hotels & Hospitality Group, noted “In recent weeks we have announced the sale of two notable assets in South East Queensland, Vibe Hotel Gold Coast and the Sebel Margate Beach (Image Below) Demand was incredibly strong across both properties, with the Vibe receiving the most enquiries and inspections of any asset our team has brought to market across ANZ in the past 12-months.”

Whilst headline data shows that domestic capital accounted for 81% of deals in 2024, noting that statistics do not reflect local fund managers deploying international capital, overseas investors have returned in force, and are scouring the country for opportunities. Bid data shows a marked increase in foreign interest, with enquiries and offers sitting at the highest level since COVID.

Continuing Bury noted, “Australian hotels are generally seeing a renaissance in foreign investor interest. This reflects a weaker Australian dollar, difficulty in accessing deals in perceived hot markets, most notably Japan, and a trading market in Australia that is showing fantastic fundamentals. Foreign investor interest is at a five-year high and whilst these groups have a range of Australian destinations on their investment horizons, we have noted that these groups do not need an education on Queensland, and the South East in particular, as it is already on the shopping list”.

Further analysis of the JLL bid data highlights that international capital is typically active across the broadest range of opportunities including trophy assets, value-add and opportunistic.

The Queensland hotel market is also benefiting from a substantial trading performance uplift, which is helping to fuel demand. RevPAR numbers, considered a key barometer for trading performance, are up 55% in Brisbane, 37% on the Gold Coast, and 29% in Tropical North Queensland in comparison to 2019 levels according to STR CoStar Group, which is delivering improved profitability for operators and investors in these markets.

Metropolitan and regional markets took the crown in 2024 as the most active destinations, and whilst CBD and traditional resort strong holds such as the Gold Coast are back in headlines during early 2025, the regions show no sign of slowing down - the first quarter of 2025 has also seen JLL close on the sale of the Andergrove Van Park in Mackay.

Commenting on the trends being witnessed, Gareth Closter, Senior Vice President, JLL Hotels & Hospitality Group, noted, “In Queensland, as with elsewhere in the country, we are seeing an increasing institutionalisation of the middle markets. The ownership profile within the space has historically been dominated by individual, private, owner operators. Recent deals that we have closed, as well as those that we are active in marketing, highlight that active capital in the space is now materially broader – a number of fund managers have raised capital to deploy into the sector, which typically provides better yields than CBD assets, whilst many family office style investors are bringing an increasing level of sophistication to the space, often bring in headquarter teams to drive the performance of their portfolio assets, whilst also looking to materially expand their portfolio’s through new acquisitions.

Zoning in on the South East Queensland market specifically, Closter went on to note, “We are witnessing an extremely positive shift in investor sentiment towards SEQ hotels.  Since the 2021 announcement of the Brisbane 2032 Olympic Games, Queensland has enjoyed increased investment activity in the hotel sector. Queensland has undeniably strong underlying fundamentals, unprecedented infrastructure spend and continual positive net migration” Mr Closter continued.

JLL Hotels & Hospitality Group has closed in excess of $100 million in hotels and accommodation assets in Queensland already in 2025.  “Based on the start to the year, 2025 will continue the trend of strong transactional activity in the Sunshine State. We are currently active with the Mercure Townsville in an on-market process for example and demand has been incredible” Mr Closter concluded.

Click here to view Mercure Townsville for sale (Above Image)

Related Reading:

Vibe Hotel Gold Coast and Surfers Pavilion For Sale - JLL

Sebel Margate Beach hotel sold at record per key rate - JLL

Lake front resort on 4 ha* Mercure Townsville for sale - JLL