$2.8bn
$XXX.Xm
25,138
2,037
$XXX.Xm
The Motels industry is gradually recovering from a downturn caused by the COVID-19 pandemic. Border closures and extended lockdowns heavily disrupted tourist activity in Australia during the 2020 and 2021 calendar years, which caused a sharp decline in the revenue and profitability of motels in Australia. The Federal Government's closure of Australia's international border from March 2020 to February 2022 led to a collapse in overseas guests, especially in popular tourist destinations. Restrictions on outbound tourism also heightened the willingness of some domestic households to holiday in Australia, partially offsetting the downturn in demand. Overall, industry revenue is expected to decline an annualised 3.6% over the five years through 2023-24 to $2.8 billion. This includes an anticipated increase of 0.8% in 2023-24 as domestic and international tourist visitor numbers rebound, fuelling a sharp recovery in motel occupancy rates.
Industry revenue has declined at a CAGR of 3.6 % over the past five years, to reach an estimated $2.8bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
SilverNeedle Hospitality Pty Ltd | 28.1 |
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Industry revenue is measured across several distinct product and services lines, including Midscale and economy accommodation, Other accommodation and Other services. Midscale and economy accommodation is the largest segment of the Motels in Australia.
Competition from substitute providers diverts demand away from midscale and economy accommodation
The industry includes motels, private hotels and guest houses. These establishments provide accommodation in rooms or suites and some provide food and beverages on the property. Most motels have direct access to an open parking area. Most guestrooms are equipped with a bath or shower but have limited in-room cooking facilities.
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ANZSIC 4400 - Motels in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
High competition in the accommodation sector has affected the performance of motels. Many motel providers have been forced to lower their prices to attract guests.
Learn about an industry's products and services, markets and trends in international trade.
Motels are increasingly offering upscale accommodation options through improved amenities or deluxe rooms. These trends stem from an effort to better compete with hotels and ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Motels cater to motorists, which gives them a competitive advantage in regional tourist destinations. New South Wales has many popular regional towns with tourists, so it att...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
The growing popularity of Airbnb has sharply increased the supply of alternative accommodation options for travellers in Australia. Motel providers have struggled to maintain...
Learn about the performance of the top companies in the industry.
There are no major companies in the Motel industry. Individual motels are instead part of membership organisations that offer branding and services for a fee while leaving ma...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The reopening of Australia’s international border is fuelling a surge in international visitors. This development allows motels to lift their occupancy rates through a larger...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
The COVID-19 pandemic caused a fall in industry-wide profitability because of collapsing revenue. In 2023-24, as domestic travel restrictions eased, motel occupancy rates sho...
Including values and annual change:
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Key data sources in Australia include:
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These sources include:
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The market size of the Motels industry in Australia is $2.8bn in 2024.
There are 2,037 businesses in the Motels industry in Australia, which has grown at a CAGR of 2.4 % between 2018 and 2023.
The market size of the Motels industry in Australia has been declining at a CAGR of 3.6 % between 2018 and 2023.
Over the next five years, the Motels industry in Australia is expected to grow.
The biggest company operating in the Motels market in Australia is SilverNeedle Hospitality Pty Ltd
Midscale and economy accommodation and High-rated motels are part of the Motels industry.
The company holding the most market share in Australia is SilverNeedle Hospitality Pty Ltd.
The level of competition is high and increasing in the Motels industry in Australia.