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As of June 2025, the hotel landscape in Melbourne, Australia showcased a diverse range of accommodations, with upscale and upper upscale hotels dominating the market at around ***percent. The luxury hotels category followed, accounting for almost ***percent of hotels in the city. 

Differing hotel landscapes across Australian cities

While Melbourne boasts a more balanced mix of hotel categories, several other Australian cities present distinct profiles. Sydney, for instance, has an even stronger focus on upscale and upper upscale accommodations, with almost ***percent of its hotels falling into this category. In contrast, Adelaide stands out with a high proportion of luxury hotels, accounting for almost ** percent of its total. Perth, similar to Melbourne, has a high concentration of upscale and upper upscale hotels but differs with a larger midscale and upper midscale segment at around ** percent. These variations highlight the diverse strategies employed by different Australian cities to cater to various traveler preferences and market segments. 

Fostering hotel loyalty

As the Australian hospitality industry recovers from the impacts of COVID-19, hotel loyalty programs play a crucial role in attracting and retaining customers. The Accor Live Limitless/Plus rewards scheme leads as the most popular hotel loyalty program among Australians, followed by Hilton Honors and IHG One Rewards. When it comes to hotel reward scheme benefits, Australian consumers are most enticed by complimentary breakfasts and room upgrades, with around ** percent of respondents valuing these perks, respectively. Other highly desired benefits include discounted stays, early check-in, and late check-out options.