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What you need to know before buying a hotel

Australia's hotel transaction volumes surged 80 per cent in 2025, but buyers face unique challenges around daily revenue volatility, high operational costs and complex valuation dynamics that differ significantly from other commercial asset classes.
Australia's hotel transaction volumes surged 80 per cent in 2025. (CommercialRealEstate.com.au)
Australia's hotel transaction volumes surged 80 per cent in 2025. (CommercialRealEstate.com.au)
Expert in Costar News in DC market since 2014
June 17, 2026 | 3:23 P.M.

Australia's hotel market recorded an 80 per cent increase in transaction volumes in 2025, according to data from Colliers, with the jump sitting 58 per cent above the long-term average. Strong trading performance, premium asset sales and increased offshore capital were among the key drivers. Despite renewed investor interest, hotels carry distinctive risks that buyers unfamiliar with the sector frequently underestimate.

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News | What you need to know before buying a hotel