- British & Irish Lions Tour and Ashes Test series tipped to deliver bumper second half of 2025 for Melbourne’s hotel industry
- Surge in leisure demand soaks up record increase in city hotel supply
- Accor supports diversity in employment with new partnership
Melbourne’s reputation as the sporting capital of Australia is set to drive the strongest annual performance for Accor since 2019.
Accor is Australia’s largest hotel operator, with 51 hotels in Greater Melbourne and 13 hotels across regional Victoria.
The city began 2025 by hosting the most successful Australian Open on record (1.2 million fans through the gates) and a record-breaking Formula 1 Rolex Australian Grand Prix (465,498 attendees across four days).
Last month, Accor’s hotels – including Sofitel Melbourne on Collins and Pullman Melbourne on the Park – were central to Melbourne’s largest-ever international incentive event, with the city successfully hosting almost 16,000 delegates for the Amway China Leadership Seminar. Amway China’s top sellers arrived in groups of 2,500+ delegates, each experiencing five days of business seminars, tours, and a gala dinner. The incentive generated $100 million in economic impact for the State.
This momentum is expected to continue into the second half of the year, with Melbourne poised for a major uplift from two marquee events: the British & Irish Lions Tour in July and the Boxing Day Ashes Test at year’s end.
While Melbourne is not traditionally considered a rugby union stronghold, it stands to benefit significantly from the anticipated 40,000 international visitors travelling for the Lions Tour – the first since 2013. The MCG is expected to be at full capacity (100,000+) for the match, with many UK fans likely to extend their stay in the city for up to a week.
The Ashes clash between Australia and England at the MCG also holds the potential to draw a record-breaking crowd, potentially surpassing the venue’s Test cricket attendance record of 373,691 set during the 2023 Boxing Day Test against India.
Events-driven hotel supply increase
Melbourne’s reputation for hosting world-class events has driven a substantial expansion in hotel supply, with the city accounting for the largest share of new hotel openings in Australia in recent years.
Over the five year period between January 2019 and January 2025, Melbourne added 22 new hotels (more than 5,000 rooms). This represents an impressive 21% growth in hotel inventory.
Accor and Ennismore – the Group’s fast-growing lifestyle collective – have been at the forefront of delivering new hotels across Melbourne, including the Australian debut of the Hyde Hotels brand with Hyde Melbourne Place, The Sebel Melbourne Kew, and Novotel and ibis Styles Melbourne Airport. A major refurbishment of Mantra Melbourne Airport is also scheduled for completion in September.
A strong development pipeline includes Mercure Melbourne La Trobe (opening early 2026), The Hoxton Melbourne (opening late 2027), and SO/ Melbourne (opening 2028).
Accor Pacific Chief Operating Officer, Adrian Williams, said Melbourne’s proven track record in delivering major events was ensuring demand kept pace with the growing hotel supply.
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.
Recovery in international, group, business and conference travel, combined with a packed events calendar, is seeing our occupancy forecasts tracking 7 per cent 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 per cent 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.
The AFL, meanwhile, 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. 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.
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.
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.
Next year, Melbourne will diversify its sporting pedigree even further through Visit Victoria’s multi-year agreement to host regular American National Football League games, which 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. Mr Williams
Supporting diversity in employment – Diversity Pathways project launches in Melbourne
Mr Williams said the significant expansion in hotel supply was creating exciting opportunities for hospitality professionals, with strong demand for qualified and passionate people to support the opening of new hotels across the city.
The recruitment and development of hotel and hospitality staff remains a priority for the industry.
Our preference at Accor has always been to grow from within the organisation, but the pace of hotel expansion in Melbourne has been unprecedented and we need governments to support skilled migration, while also investing in tertiary and trade education for the hospitality industry.
One solution is to attract new entrants to the industry and, to help achieve that, Accor has partnered with Flinders University’s Centre for Social Impact to launch the Diversity Pathways project in Melbourne, commencing this month.
This is a six-phase initiative designed to boost employment opportunities for people with cognitive disabilities in the hospitality sector. The program will see Accor hotels and lounges in Melbourne, and later across the country, take part in a tailored mentoring program, supported by experts in disability employment, hospitality and Disability Employment Services (DES).
Accor has long been a leader in developing programs to address diversity and inclusion barriers to attract, retain and grow our teams, and this new partnership reinforces our commitment to fostering more inclusive and diverse workplaces across the industry. Mr Williams
From luxury to economy, Accor operates more than 400 hotels in the Pacific region under renowned brands such as Sofitel, MGallery, Art Series, Pullman, Swissôtel, Mövenpick, Grand Mercure, Peppers, The Sebel, Mantra, Handwritten Collection, Novotel, TRIBE, Mercure, BreakFree, ibis, ibis Styles and ibis budget, as well as Ennismore’s Hyde and SO/.
About Accor, a world-leading hospitality group
Accor is a world-leading hospitality group offering stays and experiences across more than 110 countries with over 5,600 hotels and resorts, 10,000 bars & restaurants, wellness facilities and flexible workspaces. The Group has one of the industry’s most diverse hospitality ecosystems, encompassing around 45 hotel brands from luxury to economy, as well as Lifestyle with Ennismore. ALL, the booking platform and loyalty program embodies the Accor promise during and beyond the hotel stay and gives its members access to unique experiences. Accor is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity, and inclusivity. Accor’s mission is reflected in the Group’s purpose: Pioneering the art of responsible hospitality, connecting cultures, with heartfelt care. Founded in 1967, Accor SA is headquartered in France. Included in the CAC 40 index, the Group is publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information, please visit group.accor.com or follow us on X, Facebook, LinkedIn, Instagram and TikTok.
Naomi Hammond
Communications Manager – Pacific
+61(0) 434 738 380
Accor
