A strategic and diversified calendar of citywide events play a crucial role in driving hotel demand in Australia's hotel markets, new CBRE research shows.

CBRE’s Needle Movers: The Top Events Driving Australian Hotel Demand report analysed 15 major sporting, cultural, and business events in Sydney, Melbourne, and Brisbane in 2023/2024 to measure the direct impact on hotel room demand and revenue.

The most lucrative event analysed was the Sydney Harbour NYE Fireworks in 2023 which resulted in a 32% increase in occupancy and a 129% rise in average daily rate (ADR). The event generated nearly $51 million in extra room revenue.

This was closely followed by the Australian Grand Prix in Melbourne with an increase in room revenue of $50 million. The most lucrative event in Brisbane was the 2024 NRL Magic Round which generated $14 million in extra room revenue.

CBRE’s Head of Hotels Research Ally Gibson said the analysis revealed the importance of having a mix of high profile, local and off-season events to ensure steady demand for the hotel sector and positive flow on effects for the local economy and employment generation.

“Our analysis revealed high-profile events have a more substantial effect on both rate growth and occupancy demand. However, many of these events have fewer impact days and may generate less room revenue compared to those held over longer durations,” Ms Gibson said.

Ms Gibson noted that in many cases, the greatest positive rate impact for a city was experienced during low and shoulder season visitation periods.

“Events like NRL Magic Round and State of Origin in Brisbane, held during winter, and the Australian Grand Prix in Melbourne, held in the late March shoulder season provided a boost during quieter periods. This highlights the importance of strategically planning and diversifying event calendars to maximise long-term benefits for the hotel sector and the broader economy,” she added.

CBRE’s Regional Director, Hotels Valuation & Advisory Troy Craig noted the outlook of events for Sydney, Melbourne and Brisbane were strong for 2025 which would help sustain hotel demand throughout the year, encouraging longer term investment and boosting employment in the hospitality sector.

“Sydney's status as a leading cultural, business and tourism centre makes it a prime destination for major events year-round. In 2025 we’ll see a vibrant and diverse mix of iconic international and local events including major music acts like Billie Eilish, Oasis and Katy Perry, alongside high-profile sporting tournaments including the Lions Tour 2025. The city’s cultural landscape also continues to evolve with newer events like Art Month Sydney and SXSW,” Mr Craig said.

“In Melbourne, beyond traditional high-profile events such as the Australian Open, Melbourne Cup, and Australian Grand Prix, the city is attracting a growing number of global conferences, like the World Chambers Congress and new music and art celebrations such as Rising festival, which fuel rising demand for accommodation.

“Brisbane has been actively enhancing its reputation as a premier event city, positioning itself as a key player in Australia’s tourism and hospitality sectors. With the 2032 Brisbane Olympics on the horizon, the city has seen substantial investment in infrastructure and venue upgrades, making it an increasingly sophisticated and attractive destination for major events across sports, business, and cultural sectors,” Mr Craig added.