New study highlights strong demand for Perth hotel market

• New Perth Hotel Demand Study released, confirming strong long-term growth outlook
• Capacity for thousands of additional hotel rooms while maintaining strong occupancy levels
• Study commissioned by the Cook Government to support future short-term accommodation investment and local jobs, growing the tourism sector

Perth's hotel sector is set for strong growth, with new research showing the city will benefit from thousands of additional rooms over the next decade.

The Perth Hotel Demand Study, commissioned by the Cook Government through Tourism WA, examines current short-term accommodation supply and forecasts future demand to inform planning and investment.

The study identifies opportunities for more lifestyle, boutique, midscale, and long-term accommodation options to meet evolving visitor needs and support Western Australia's booming tourism industry.

It indicates visitor demand is expected to grow faster than the number of rooms currently in the development pipeline. Modelling shows Perth could accommodate up to 3,500 additional hotel rooms by 2035 while still maintaining occupancy above 80 per cent.

The study also identifies key precincts including Elizabeth Quay, Northbridge, East Perth, the Airport Corridor, and the CBD as areas prime for development.

Similar previous studies have helped drive significant Perth hotel development, including The Westin Perth and The Ritz-Carlton, Perth.

The latest findings show Perth's hotel market is performing strongly and is expected to continue growing, supported by expanded aviation networks, major events, population growth, and investment in city infrastructure.

Perth's hotel sector is operating well above the national average, with data from STR showing city hotels achieved an average occupancy rate of 81.2 per cent for 2025 - compared with the national average of 73.2 per cent - and often above 85 per cent for extended periods.

The strong demand for hotel accommodation comes amid Western Australia welcoming more than one million international visitors in the year ending October 2025, a new record for the State's tourism sector.

By funding the hotel demand study for the first time in more than a decade, the Cook Government is providing industry and investors with clear, up-to-date evidence on Perth's future accommodation needs to support the growth of the tourism sector and local jobs.

Regional investment profiles and accommodation studies are also available at tourism.wa.gov.au, helping guide tourism investment decisions, support sustainable growth in the visitor economy, and contribute to the continued diversification of Western Australia's economy.

Find out more at tourism.wa.gov.au

Comments attributed to Tourism Minister Reece Whitby:

"The Perth Hotel Demand Study reinforces Perth's growing appeal as a visitor destination and provides a clear picture of accommodation demand for the decade ahead, including opportunities for a diverse range of new hotel options that meet the needs of leisure and business travellers alike.

"The strength of demand reflects a Western Australian economy that continues to grow, supported by the Cook Government's investment in a major events calendar that is attracting more leisure travellers to the State, as well as expanding aviation networks that are making it easier than ever for travellers to come here.

"Having accurate, forward-looking data gives investors and industry the confidence to plan for the future, supporting decisions that guide the sustainable growth of accommodation as visitation increases.

"These results show our long-term visitor economy strategy is delivering, with tourism continuing to create jobs and support businesses across Western Australia in line with the Cook Government's economic diversification strategy."