The 2025 Australian Open is in full swing and hotels across Melbourne are enjoying a flurry of activity as visitors descend on the city.

This year’s event is expected to draw record fan numbers an bring an increase of up to 10% in Melbourne city hotel room bookings, across main tournament days, according to Accommodation Australia.

“Event-related occupancy forecasts are particularly impressive, given STR and JLL report Melbourne has welcomed 81 new hotels and over 5,200 rooms in the five-year period between 2019 and 2024, with another 2,000 rooms still to come,” said Accommodation Australia (Victoria) General Manager, Dougal Hollis.

Dougal Hollis, Accommodation Australia (Victoria)

“This cumulative growth represents a circa 33% increase in Melbourne hotel stocks, obviously generating more hotel rooms to be filled.

“Although the entire city is benefiting, CBD hotels most proximate to the Melbourne Park tennis precinct are typically forecasting to be busier than those further away.”

The weekend of January 18-19 is projected to have the strongest occupancy, expected in the mid-high 80% range, ahead of 2024 levels which were in the early-mid 70% range.

The tournament is also expected to have a positive impact on the luxury end of the hotel market.

“Strong demand is apparent from the North American market, with hotel suite bookings popular,” said newly appointed Accommodation Australia (Victoria) Advisory Group Chair, Peter Minatsis.

“This is perhaps unsurprising, given current favourable exchange rates, when comparing the value of the Australian dollar to the United States dollar.

“Many hoteliers have also developed AO-themed activations within their properties, to enable guests to continue their event experience pre-and-post travelling to Melbourne Park.”

The occupancy boost is welcome news as hoteliers seek to match a high performing Q1 2024. Compared to February 2024, which saw the hugely popular Taylor Swift and Pink music concerts, Melbourne occupancies are currently 7% down for the month of February.