The Australian Open 2025 is set to smash Melbourne’s hospitality sector, with record fan attendance projected to drive a 10% surge in hotel room bookings across the city during the tournament’s key dates. Industry experts and hotel operators are hailing the event as a significant catalyst for Melbourne’s economy and global tourism reputation.
Dougal Hollis, General Manager of Accommodation Australia (Victoria), highlighted the pivotal role of significant events like the Australian Open in revitalizing Melbourne’s hotel industry. “The Australian Open not only attracts a global audience but reinforces ‘brand Melbourne’ as a world-class destination. With record attendance anticipated, this event is expected to energize the city’s hospitality sector,” said Hollis.
Melbourne’s Hotel Sector Expands to Meet Demand
Over the last five years, Melbourne has added 81 new hotels and over 5,200 rooms, with another 2,000 rooms set to debut by 2025, according to reports from STR and JLL. This represents a remarkable 33% growth in hotel inventory. Despite this significant expansion, the demand for accommodations during the Australian Open is expected to increase occupancy rates.
Hotels closest to Melbourne Park, the tournament’s epicentre, are forecasted to achieve occupancy rates in the mid-to-high 80% range during the tournament’s middle weekend (January 18-19). These figures notably surpass the 2024 levels, which hovered in the early-to-mid 70% range.
Luxury Hotels Shine Amid North American Demand
The city’s luxury hotel market is poised for exceptional performance during the Australian Open. The newly appointed Chair of the Accommodation Australia (Victoria) Advisory Group, Peter Minatsis, emphasized the strong interest of North American travellers.
“Bookings for luxury suites have surged, driven by favorable exchange rates between the Australian and U.S. dollars,” said Minatsis. “In addition, many hoteliers have introduced Australian Open-themed activations within their properties, allowing guests to extend their tennis experience beyond Melbourne Park.”
AO 2025 Activations Elevate Guest Experiences
Hotels across the city are capitalizing on the tournament buzz by offering bespoke AO-themed experiences, including tennis-inspired dining menus, live match screenings, and exclusive fan packages. These initiatives aim to create an immersive event atmosphere, ensuring visitors have memorable stays while celebrating the grand slam tournament.
Post-Tournament Trends and Challenges
While the Australian Open is set to deliver a robust January for the hospitality sector, February 2025 presents challenges. Occupancy rates for February are tracking 7% lower than the same period in 2024. Industry analysts attribute this to the absence of significant concerts like Taylor Swift and Pink, which drew substantial crowds last year.
Nevertheless, Melbourne’s ability to attract high-profile events continues solidifying its position as a premier global destination.
Tourism and Economic Boost for Melbourne
As one of Australia’s marquee events, the Australian Open provides a dual benefit—enhancing Melbourne’s international profile while significantly boosting the local economy. The influx of visitors supports hotels, restaurants, retail outlets, and transportation services, showcasing the city’s vibrancy and allure.
Conclusion
The Australian Open 2025 promises to be a game-changer for Melbourne’s hospitality sector, with record attendance driving unprecedented demand for hotel rooms. From luxury suites catering to international guests to innovative AO-themed experiences, Melbourne hotels are ready to be the ultimate backdrop to one of the world’s most iconic tennis tournaments.
Early bookings are strongly encouraged for visitors planning their stay to secure prime accommodations and fully enjoy Melbourne’s unique offerings during this world-class event.
Written by: Soo James