In HM’s 2025 Australasian Development Outlook, Ascott Australasia Managing Director, David Mansfield, talks strategy amid a resilient but fragile sector.
Nobody could accuse 2025 of being a boring year. With economic and political uncertainty here and abroad, the resilience and fragility of the accommodation sector have both been on display, ultimately delivering a strong sense of resolve among the industry.
The cautious optimism with which we started the year has proven sound. At the mid-point of this year, there’s an opportunity to reflect on what has challenged us in the accommodation industry, where the opportunities are, and what to expect in the future.
From natural disasters in Queensland and NSW, to tariffs upending market confidence across the globe, navigating what it means for the tourism sector is ever-changing. During Cyclone Alfred, CoStar STR data showed that on the 11th of March, occupancy in the Gold Coast region was down 38%, versus the same day last year. In the Northern Rivers region, occupancy was down 60%. In the face of these challenges, I’ve remained inspired by the way in which our industry has rallied to meet the needs of the community and guests.
Looking forward, I’m buoyed by the ways in which our industry centres the changing needs of guests. We know travellers have an appetite for culture-led travel that is continuing to grow across 2025/26. Our Quest to see Australia initiative is answering this need, with a multi-property booking tool and road-trip itineraries that guide guests to the best of our country’s food, wine, nature and First Nations experiences.
Practically speaking, blending work and leisure is more important than ever to guests. Our 197-unit lyf Bondi Junction property, launched in April, is perfectly timed to capitalise on this with its vibrant communal spaces and networking mixer events.
Across our Ascott brands, we’re seeing a continuation of value-based travel. According to Statista, more than 80% of global travellers believe sustainable travel is important, and we’re experiencing enthusiastic uptake of our sustainability initiatives – our partnership with Hotel for Trees has resulted in more than 10,000 trees planted (and counting).
Ultimately, I believe our period of reckoning, reflection and innovation has moulded us into an entirely new industry: one that seeks above all to remain adaptive, intentional and future-focused.
Read HM’s 2025 Australasian Development Outlook in full here