If there’s one thing Sydney’s hotel industry has learned over the years, it’s this: panic rarely checks in for long.
Despite economic jitters, rising operating costs, geopolitical instability and enough global uncertainty to make even seasoned investors reach for the antacids, NSW’s accommodation sector is proving remarkably resilient. Like a veteran concierge during a lobby flood, the industry appears calm, composed and quietly getting on with business.
Around 150 hotel general managers and senior executives gathered at Sydney’s stately The Fullerton Hotel Sydney this week for the Accommodation Australia NSW Hotel Market and Economic Outlook Update, where the prevailing mood was not doom and gloom but cautious confidence.
Mind you, attendees had to battle some properly miserable Sydney weather to get there. Nothing says commitment to industry networking quite like trudging through sideways rain, clutching a lukewarm coffee and a laptop bag.
Still, the message inside the ballroom was considerably sunnier.
According to Accommodation Australia NSW General Manager Stacey McBride, travel demand across the state has remained firm despite short-term turbulence stemming from instability in the Middle East and ongoing global economic pressures.
“Despite the volatile occupancy in the short-term, the overall mood from the expert speakers was cautious optimism and a strong belief demand inevitably bounces back from these events,” McBride said.
L-R: John O’Shea – General Manager at the Fullerton Hotel Sydney, Chris Boyd – Senior Associate – Investment Sales Hotels & Hospitality Group, JLL, Besa Deda – Chief Economist at William Buck, Stacey McBride – General Manager at Accommodation Australia NSW, Antony Frino – Market Team Manager at Booking.com and Paul Hammond – Sales, Pacific at STR, a CoStar Group company.
That sentiment was echoed throughout the day as economists, analysts, and hotel investment specialists painted a picture of an industry still attracting visitors, investors and confidence even if the headlines overseas continue to resemble a Hollywood disaster script.
Chief Economist at William Buck, Besa Deda, unpacked the broader economic landscape, addressing everything from household spending and labour market conditions to interest rate expectations and business confidence.
Translation? Australians may be watching their wallets more carefully, but they still want holidays.
And therein lies the great strength of travel. People may postpone buying a sofa or upgrading the family SUV, but they’ll still find a way to escape for a few nights if the experience feels worthwhile.
Meanwhile, STR Pacific Sales lead Paul Hammond noted Sydney’s hotel market continues to benefit from strong underlying demand, healthy room rate growth, blockbuster events and moderating supply growth.
In simple terms, Sydney still has what travellers want: harbour views, major events, world-class dining and just enough chaos to make it feel exciting.
Importantly, the investment community also appears far from spooked.
Senior Associate in JLL’s Hotels and Hospitality Group, Chris Boyd, said Australia continues to attract both domestic and international capital because of its reputation as a stable and transparent investment environment.
That’s no small advantage in a world where uncertainty now arrives daily before breakfast.
Boyd added that elevated construction costs and financing challenges are slowing the pace of new hotel development across major Australian markets, a reality that may help existing operators maintain higher occupancy and room rates.
Overdevelopment has humbled many destinations over the decades. Sydney, for now at least, appears to be avoiding that trap.
Then came the inevitable conversation about artificial intelligence.
Booking trends, traveller research and digital customer behaviour are evolving rapidly, according to Booking.com Market Team Manager Antony Frino, who said AI-powered tools are increasingly shaping how travellers discover and book accommodation.
Thankfully, travellers still seem to prefer actual holidays over virtual reality goggles and a YouTube beach soundtrack.
Frino also revealed that Sydney is performing strongly as a winter destination, ranking as the second-most-searched domestic winter destination and fifth overall when domestic and international searches are combined.
Even more encouragingly for regional tourism operators, seven NSW destinations featured in Booking.com’s top 30 domestic winter search destinations.
That’s an important reminder that the state’s tourism economy extends well beyond Sydney Harbour postcards and Opera House selfies.
From coastal escapes to wine regions and alpine adventures, NSW continues to offer the sort of varied travel experiences modern travellers increasingly seek, particularly those chasing meaningful, experience-led travel over cookie-cutter holidays.
The road ahead may still contain bumps. Rising costs, global instability and economic uncertainty are hardly disappearing anytime soon.
But if this week’s gathering demonstrated anything, it’s that Australia’s hotel sector has developed a certain battle-hardened resilience.
After all, compared with pandemics, border closures and years of operational chaos, a little economic uncertainty probably feels almost relaxing.
by Christine Nguyen – (c) 2026.
Read Time: 4 Minutes.
About the Author.
Christine’s story is one of quiet courage, told without fuss and lived with remarkable grace. She arrived in Australia as a young refugee from Vietnam, carrying little more than hope, family, and a curiosity that refused to be extinguished. Sydney became home, built patiently, brick by careful brick.
She studied Tourism at TAFE and soon found her place in inbound travel, working with one of the city’s leading destination companies. Christine loved showing visitors the Australia that lives beyond postcards, warmer, truer, and far more interesting.
When the sea began to whisper, and life asked for a gentler rhythm, she listened. Designing brochures, writing blogs, she discovered storytelling waiting quietly inside her.
Today, at Global Travel Media, Christine writes with warmth and wisdom, reminding us, softly and persuasively, why travel still matters.
