Luxury lodges have been the strongest performing sector of the Australian and New Zealand hotel market buoyed by robust demand from affluent domestic and international visitors, new CBRE research has shown.
CBRE's analysis shows that total revenue per occupied room has risen 59 per cent since 2018 (pre-COVID), with margins up 54 per cent, supported by a global rise in the number of high-net-worth individuals (HNWI’s) and an increased desire for unique experiences.
Luxury lodges offer curated, holistic experiences, exceptional dining and wellbeing offerings.
Prominent examples in NSW cited by CBRE are Capella Lodge on Lord Howe Island, Tower Lodge in the Hunter Valley, Pretty Beach House on the Central Coast and Spicers Sangoma Retreat in the Blue Mountains.
The expansion of luxury tourism has propelled the luxury lodge sector and underpinned a rapid post-pandemic rebound following years of pent-up demand.
CBRE Research Analyst Katya Ezhova said: “While luxury travel demand is strongest in the 40 to 50-year-old age bracket there is also a broadening demographic of aspirational luxury travelers, many of whom are Millennials or Gen Z. This cohort is increasingly willing to allocate a considerable portion of their financial resources toward premium travel experiences.”
“The strength of traveller demand has elevated luxury lodges to be the most profitable hotel sub-sector, with steadily rising global wealth, increased disposable incomes and a growing demand for unique and personalised experiences creating a fertile environment for the luxury tourism sector to flourish.”
View the full report here.
