Motels in Australia - Industry Research Report

Room to improve: Recovering domestic and international travel to accommodate revenue growth

The Motels industry is gradually recovering from a downturn caused by the COVID-19 pandemic. Border closures and extended lockdowns heavily disrupted tourist activity in Australia during the 2020 and 2021 calendar years, which caused a sharp decline in revenue and profitability of motels in Australia. The Federal Government's closure of Australia's international border from March 2020 to February 2022 led to a collapse in overseas guests, especially in popular tourist destinations. Restrictions on outbound tourism also heightened the willingness of some domestic households to holiday in Australia, partially offsetting the downturn in demand. Overall, industry revenue is expected to decline at an annualised 3.3% over the five years through 2022-23, to $2.7 billion. This includes an anticipated increase of 8.0% in 2022-23, as domestic and international tourist visitor numbers rebound, fuelling a sharp recovery in occupancy rates at motels.

The industry includes motels, private hotels and guest houses. These establishments provide accommodation in the form of rooms or suites, and some provide food and beverages on the property. Most motels have direct access to an open parking area. Most guestrooms are equipped with a bath or shower, but have limited in-room cooking facilities.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.