Business
16 April, 2026
Service drives success
CAIRNS is only one of four cities throughout Australia which have outperformed pre-COVID hotel rates.
Cairns recorded RevPAR (revenue per available room) growth of at least 8%, above the national 6.7% increase according to the CBRE 2026 hotel overview and outlook report.
“Cairns continues to record strong trading conditions, with occupancy now above pre-pandemic levels and RevPAR materially exceeding 2019 benchmarks, supported by diversified leisure, MICE (meetings, incentives, conferences and exhibitions) and recovering international demand,” the report said.
“Improving inbound visitation and expanded air connectivity, including new direct services to Nadi (by Fiji Airways), are strengthening demand depth and supporting longer stays.
“Development feasibility remains challenging, limiting new supply which is supporting near-term performance, although refurbishment and new product will be required to sustain ADR (average daily rate) growth over the medium term.
“Cairns continued to record strong trading conditions in 2025, building on the significant occupancy gains achieved in the prior year.
“Occupancy increased a further 3% to 79%, exceeding pre-pandemic levels.
“This improvement translated into 5% ADR growth to $214, with rates now 45% above 2019 levels, supporting 8% RevPAR growth to $168. RevPAR now sits 46% above pre-pandemic benchmarks.
“Performance has been supported by a broadening demand base, with improving international arrivals, strengthening MICE activity and continued leisure demand.
“The commencement of new direct flights to Nadi in April 2025 has further supported connectivity and inbound visitation, along with increased capacity on Singapore Airlines and the return of Cathay Pacific’s seasonal flights.”
The report said occupancy was expected to remain elevated and could reach 82% by 2028, with increasing MICE, adventure and ecotourism activity to support demand diversification and mid-week trading.
“New hotel development remains challenging under current feasibility conditions, which is expected to support performance gains,” the report said.
“However, there is a growing need for new and refurbished product to lift baseline rates and sustain ADR growth over the medium term,” it said.
“The expectation is for 2.5% to 3.0% over the three-year forecast period.
“RevPAR growth is expected to moderate, averaging less than 4% per annum to 2028, driven by stable occupancy and moderate rate increases.’
In the latest Reef Casino Trust’s annual report, trust CEO Brad Sheahon reported secure bookings at the Pullman Reef Hotel Casino.
“Strong bookings from intra and interstate visitors continued at the hotel, particularly during the recent busy season,” he said.
“Room revenues increased by 11.2%.”
The CBRE report said Tropical North Queensland “continues to benefit from resilient domestic demand, with Cairns’ role as the gateway to the Great Barrier Reef and Daintree underpinning extended length of stay”.
“In YTD Sept 2025, domestic visitation staying in hotel accommodation totalled 1.8 million nights (average stay 3.8 nights), while international arrivals reached approximately 300,000 visitors staying in hotel accommodation, generating 1.5 million nights (average stay five nights),” the report said.
“The USA remains the largest source market (30%), followed by Japan (26%) and the UK (24%).
“Total passenger movements increased 1.5% in FY2024/25 to 4.7 million. International passenger volumes rose 11% and are broadly in line with 2019 levels, while domestic passengers (86% of total movements) remain marginally below pre- pandemic levels.
“International visitation is expected to continued to grow in 2026, however will be dependent on flight capacities and the introduction of new services into Cairns.
“Continued focus on major events and business attraction initiatives, alongside the proposed SkyHaven airport precinct development, is expected to support MICE and visitation outside of peak periods.”
