New research shows sporting, cultural and business events play a crucial role in driving demand in the Sydney hotel market.

CBRE’s Needle Movers: The Top Events Driving Australian Hotel Demand report analysed 15 major sporting, cultural, and business events in Sydney, Melbourne and Brisbane in 2023 and 2024 to measure the direct impact on hotel room demand and revenue.

The top event analysed was the Sydney Harbour New Year's Eve Fireworks in 2023, which resulted in a 32 per cent increase in occupancy and a 129 per cent rise in average daily rate (ADR). The event generated nearly $51 million in extra room revenue.

The report also highlighted the economic benefits of significant events during 2023 and 2024, such as World Pride Week, Taylor Swift Eras Tour, Vivid Sydney, NRL Grand Final and AUS Healthcare Week.

CBRE Head of Hotels Research Ally Gibson said the analysis showed the importance of having a mix of high profile, local and off-season events to ensure steady demand for the hotel sector and positive flow on effects for the local economy and employment generation.

“Our analysis revealed high-profile events have a more substantial effect on both rate growth and occupancy demand," Ms Gibson said.

"However, many of these events have fewer impact days and may generate less room revenue compared to those held over longer durations."

Ms Gibson noted that in many cases, the greatest positive rate impact for a city was experienced during low and shoulder season visitation periods.

Events held during winter and shoulder seasons provided a boost during quieter periods. Ms Gibson said this highlighted the importance of strategically planning and diversifying event calendars to maximise long-term benefits for the hotel sector and the broader visitor economy.

CBRE Regional Director, Hotels Valuation & Advisory Troy Craig said the calendar of events was strong for 2025, which would help sustain hotel demand throughout the year, encouraging longer term investment and boosting employment in the hospitality sector.

“Sydney's status as a leading cultural, business and tourism centre makes it a prime destination for major events year-round," Mr Craig said.

"In 2025 we’ll see a vibrant and diverse mix of iconic international and local events including major music acts like Billie Eilish, Oasis and Katy Perry, alongside high-profile sporting tournaments including the Lions Tour 2025. The city’s cultural landscape also continues to evolve with newer events like Art Month Sydney and SXSW."