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As of June 2025, the hotel landscape in Sydney, Australia revealed a strong concentration of upscale and upper upscale accommodations, with almost ** percent of hotels falling into this category. In comparison, luxury hotels comprised only *** percent of Sydney's total hotels. This dominance of higher-end lodgings reflects Sydney's status as a premier destination for both business and leisure travelers.

How does Sydney's hotel landscape compare with other Australian capital cities?

While Sydney leads in upscale offerings, other major Australian cities show diverse hotel distributions. Melbourne, for instance, has a more balanced hotel mix, with nearly ** percent upscale and upper upscale hotels, complemented by almost ** percent luxury accommodations, and around ** percent midscale and upper midscale hotels. This variety caters to a wider range of visitor preferences and budgets. Brisbane stands out, with almost ** percent of its hotels in the luxury category, indicating a strong focus on ultra-high-end tourism. These variations highlight the unique positioning of each city in Australia's competitive tourism market.

Travel booking trends

Despite challenges posed by the COVID-19 pandemic, Australia's tourism and travel accommodation sectors show signs of recovery. Hotels and flight tickets emerged as the most popular travel product bookings among Australians in a 2025 survey, indicating a resurgence in both domestic and international travel. Booking.com remained the top choice for online hotel reservations among Australian consumers in a 2025 survey, followed by Airbnb. As the industry rebounds, the diverse accommodation offerings across Australian cities are well-positioned to cater to a diverse range of traveler preferences and budgets.