Accor is reporting that Melbourne is set to deliver its strongest annual performance since 2019, thanks to a plethora of major sporting events in the city.
With 51 hotels in Greater Melbourne and 13 hotels across regional Victoria, Accor is benefiting from a jam-packed sporting calendar – from the Australian Open and Formula 1 in the first quarter of the year, to the British and Irish Lions Tour in July and the Boxing Day Ashes Test at the end of the year.
“Sporting events have become one of the most important demand drivers for our Melbourne hotels, but the benefits of hosting these international events go far beyond the actual event. They generate extended stays, repeat visitation, and global exposure for the city,” said Accor Pacific Chief Operating Officer, Adrian Williams.
“The Formula 1 Australian Grand Prix and Australian Open are world-class events that attract a massive international audience. We continue to see guests prioritising these global events as non-discretionary leisure experiences, choosing to extend their stay and make the most of the city and State’s attractions.”
Melbourne’s reputation for hosting world-class events has driven a substantial expansion in hotel supply with 22 new hotels added in the last five years (January 2019-January 2025) – representing hotel inventory of 21%.
Accor and Ennismore recently celebrated the Australian debut of Hyde Hotels at Melbourne Place, with The Sebel Melbourne Kew, and Novotel and ibis Styles Melbourne Airport among other recent openings.
A major refurbishment of Mantra Melbourne Airport is also scheduled for completion in September, and a strong development pipeline includes Mercure Melbourne La Trobe (opening early 2026), The Hoxton Melbourne (opening late 2027), and SO/ Melbourne (opening 2028).
“Melbourne is offering some of the finest new hotel product in a generation, which combines exceptionally well with the city’s reputation as a dynamic leisure destination to keep building visitor numbers,” said Williams.
“Recovery in international, group, business and conference travel, combined with a packed events calendar, is seeing our occupancy forecasts tracking 7% ahead of last year.
“Winter is traditionally a quiet time for Melbourne hotels, but not this year. Over the past four weeks, the average booking pace has increased 6% on last year across Melbourne and surrounds.
“The fact that the British & Irish Lions rugby tour and the Boxing Day Ashes Test will draw substantial international, interstate and intrastate visitation gives us every confidence we’re on track to deliver the strongest year for our Melbourne hotels since 2019.”
Williams said the AFL continues to be a powerhouse for tourism, consistently drawing interstate and regional visitors throughout winter and significantly boosting hotel occupancy rates.
“As the official accommodation partner of the AFL, we recognise the league’s pivotal role in sustaining the city’s tourism and hospitality economy,” Williams said.
“While the Lions tour will roar through Melbourne for one week in July, the AFL delivers a season-long influx of fans – culminating in peak occupancy during the Grand Final weekend.”
With Visit Victoria’s multi-year agreement to host regular American National Football League games next year, Williams anticipates this will attract “a new and high yielding audience to the city”
“The strength of recovery across various market sectors this year is very encouraging, and given there is further potential to increase both international tourism and business travel, the outlook offers real optimism for the hotel sector – even against the backdrop of cost-of-living pressures and international trade uncertainty,” Williams added.