Accommodation Australia NSW (AA NSW) reports the outlook is looking positive for Sydney’s accommodation venues heading into the busy summer months.

Around 160 hotel mangers and directors gathered at the Fullerton Hotel for AA NSW's Hotel Market and Economic Outlook meeting.

The event followed Sydney celebrating one of its strongest trading months in years, with accommodation levels in August almost at capacity.

AA NSW General Manager Stacey McBride said: “It’s pretty clear August was one of the strongest performing months of the year and we have high hopes for summer.

“The city really has a positive vibe after events like the Lions Tour and the marathon – and with events ahead like the busy Christmas/New Year period and then Mardi Gras hopes are high.”

STR Account Manager Joanne Cohen told the gathering: "During the marathon period alone, hotels had one of Sydney’s strongest trading results on record with ADR up more than 50 per cent and occupancy nearly 46 per cent higher year-on-year.

“It’s an encouraging outlook for Sydney’s accommodation market, noting continued rises in occupancy and room rates, though at a steadier pace than earlier in the pandemic recovery.

“Occupancy patterns have normalised in Sydney, with five of seven days averaging above 80 per cent. Weekends are strong and midweek corporate and group travel has rebounded, helping hotels lift average daily rates (ADR).”

Head of Travel and Tourism at Roy Morgan Adele Labine-Romain said international arrivals were up, but markets were changing with strong growth from South Korea, a “stabilising trend” from India but on-going gaps in the traditional markets of China and New Zealand.

“Current travel trends show while the domestic market has softened, international recovery continues to strengthen,” she said.

“Over the past three months, international arrivals have reached 95 per cent of pre-pandemic levels, helping to offset slower local demand.

“Meanwhile, intrastate visitors remain a key driver for Sydney, accounting for more than half of all visitor nights and 44 per cent of total visitor spend. Among international travellers, holidays now lead as the main purpose of travel (44 per cent), surpassing visiting friends and relatives (34 per cent), business (nine per cent) and education (six per cent).”

She noted that despite ongoing concerns about interest rates and financial stability, Australians remain eager to travel - taking an average of 17 domestic trips each year. Encouragingly, nearly one in three Australians is planning a trip to NSW within the next two years.

Commonwealth Bank economist Harry Ottley provided an economic outlook and noted that while further rate cuts are unlikely in 2025, the economy is expected to grow more quickly in the years ahead with GDP forecast to reach two per cent by the end of the year and 2.2 per cent by the end of 2026.

Booking.com Market Team Manager Antony Frino spoke about the growing influence of social media and AI on how people plan and book trips, with travellers increasingly seeking experiences that feel more personal and purposeful.

Pictured main: Antony Frino, Stacey McBride, Joanne Cohen, Adele Labine-Romain and Harry Ottley.