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Hotels record softer December results, but up year-on-year

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Australia’s major city hotels had the traditional Christmas lull in performance as leisure stays involving major sport and entertainment events replaced business tourism.

The latest Accommodation Australia figures show Sydney remained the nation’s busiest hotel destination, as the only mainland city to record occupancy above 80 per cent – 81.3 per cent – for December.

Hobart recorded precisely the same occupancy albeit at much lower revenue. 

In November Sydney led the nation with 90.4 per cent occupancy on an average daily rate (ADR) of $326.97, however ADR rose to $349.08 in the subsequent month, up 11.1 per cent year-on-year with revenue per available room (RevPAR) rising 14.9 per cent compared with December 2024.

Other capitals saw their occupancy for December 2025 drop from the 80s into the 70s in percentage terms, but they recorded higher average daily rates, a reflection of holiday pricing, in most cases, led by major events in these cities.

December looked promising for Melbourne and the city did record double figure growth year-on-year in occupancy, RevPAR and ADR.

Melbourne hotels recorded 76.9 per cent occupancy, ADR of $243.48 – almost identical to the figure for November, but up 13 per cent compared to December 2024 – and RevPAR of $187.22, which was 25.8 per cent higher than December 2024.

The first day of the Boxing Day Ashes Test at the MCG drew 94,199 attendees, the largest single-day cricket crowd in MCG history. Day two attracted a crowd of 92,045 and Cricket Australia reported it had expected a total attendance of more than 271,865, the record figure set in 2013.

However, when the Ashes run in Melbourne finished after just two of the five days, Cricket Australia estimated a loss of $25 million for itself and broadcasters caused by the failure of the wicket at the MCG, with Melbourne hoteliers and the broader hospitality industry likely to have also lost revenue.

The third Ashes Test was a sell-out in mid-December in Adelaide.  The city’s hotels recorded strong improvement for December 2025 over 2024, with 76.2 per cent occupancy, up 9.4 per cent on December 2024, ADR of $248.22, up 15.6 per cent on 2024, and RevPAR of $189.4, up 26.5 per cent on 2024.

Similarly Brisbane’s performance for December 2025, while showing modest occupancy growth of 2.2 percent year-on-year to 73 per cent, saw double figure growth in ADR and RevPAR for the period with ADR of $281.28, up 16.1 per cent, and RevPAR up 18.7 per cent to $205.45.

The Gold Coast shed occupancy numbers, down 3.1 per cent year-on-year to 70.8 per cent, however it led the country with an average daily rate of $359.13, up 5.9 per cent on December 2024.