The hotel industry in Canberra is experiencing a surge in development, with a projected 481 new hotel rooms set to open by 2027. This growth is particularly notable given the stable government and corporate travel to the ACT, which has shielded the market from the volatility seen in other regions. The CBRE's 2026 Hotel Overview and Outlook report highlights the resilience of the ACT market, with 1.8 million nights of accommodation provided by hotels in the 12 months to September 2025, and an average daily rate of $195 per room, 15% higher than pre-pandemic levels. However, the report also notes that the ACT market is described as 'moderate' compared to the record sales experienced across Australia as a whole.
One key player in this expansion is Veriu, an Australian hotel operator that has committed to the ACT by opening its second site, Punthill Narrabundah, on Jerrabomberra Avenue in Narrabundah. This 86-room hotel is a significant addition to the company's first site in Tuggeranong, opened in 2024. Veriu Group chief executive Zed Sanjana emphasized the unique market in Canberra, underpinned by a stable and diverse mix of demand drivers, including government, defence, education, and corporate travel.
The ACT's hotel market is also attracting major investments. Two significant hotels, The Midnight Hotel and The Sebel Campbell, are set to come onto the market in the first quarter of 2026. The Sebel Campbell, part of the Campbell5 development, is the second Sebel property to be listed, following the Sebel Hotel Civic in mid-2025. Additionally, Gold Creek Square at 7 O'Hanlon Place has been listed for sale, with development application approvals in place for a three-storey, 57-room hotel adjoining a 400-person event space.
This wave of new hotel developments in Canberra is a testament to the city's growing importance as a business and leisure destination. The stable government and corporate travel, coupled with the increasing demand for accommodation, are driving this growth. However, the market's resilience is also a reflection of the broader economic conditions in Australia, where the ACT's 'moderate' growth stands in contrast to the record sales in other regions. As the hotel industry continues to evolve, Canberra's position as a key player in the Australian accommodation landscape is set to strengthen further.
