New international flight routes are set to supercharge Australia’s hotel sector, potentially creating demand for up to 1.9 million room nights annually according to a new CBRE analysis.

CBRE’s From Runway to Room Nights report highlights that 56 new routes have added 10,500 annual flights into key Australian cities, marking a significant shift in the country’s inbound travel capacity.

The analysis shows Sydney is expected to see the largest uplift in demand, with 13 new flight routes projected to generate around 390,000 additional short-term arrivals and drive an expected 542,000 room nights by the end of 2026.

CBRE’s Head of Hotels Research Ally Gibson said: “Increased capacity from core markets including China, India, Southeast Asia, North America and the Middle East is expected to drive a continued recovery in international arrivals, reinforcing aviation’s role as a critical lever for tourism and hotel sector growth.

“As these new services mature and inbound visitation continues to recover, the uplift in demand is expected to increase occupancy and RevPAR levels across key markets as Australia’s hotel development pipeline enters a sustained period of limited supply, driven by escalating construction costs and productivity constraints.”

CBRE’s analysis takes into account each route by airline, origin, frequency and aircraft type. This was used to estimate new international short-term arrivals and translate them into projected hotel room night demand and occupancy impacts.

By the end of 2026, CBRE estimates that these new flights routes will create demand for around 1.9 million hotel room nights nationally, with the potential to lift Australia’s hotel occupancy by an average of 3.4 per cent.

CBRE Hotel’s Troy Craig said: “The gateway markets of Sydney and Melbourne, underpinned by strong corporate and leisure-based demand and major event schedules, are expected to sustain elevated levels of international arrivals and translate this into continued performance growth.”

Read the full report here.