Double Shortfall Hands Brisbane Growth Opportunity

A double development shortfall in Brisbane across homes and hotel rooms could be a blessing in disguise, driving the River City’s triple bottom line—people, place and profit. Projects and planning hold the key to transforming the city’s pains and it may be a two-for-one deal. Brisbane’s hotel pipeline has fallen 90 per cent in the past five years, according to CBRE and Property Council research to mid-2025. There are 230 hotels and more than 12,700 rooms in Brisbane, according to Tourism Research Australia, which says there are 46,000 rooms across the broader South-East Queensland region. However, with the 2032 Olympics on the way, that number pales in comparison to the 120,000 rooms in Los Angeles and 133,000 in Paris. Brisbane’s hotel supply was all but pushed to its limits in July when the British Lions rugby union tour drove occupancy to 89 per cent and boosted revenue by $10 million—a record quarter for the city’s hotels, according to a report from CBRE released in October. If that is what 38 players can do, there is a lot to be gained from the 10,000-plus athletes heading to the Games. On top of that, Brisbane needs almost 90,000 more homes before 2032, according to the South-East Queensland Regional Plan to support the city’s growing population. Brisbane-based architect, developer and hotel co-owner Con Zahos ( pictured above with the Vibe Hotel Adelaide plaza ) says this is where the opportunity lies and that there is more to target than just the luxury market. “The supply here has been led by ADR, the average daily rate, so that’s why some of these higher end hotels are going up—the maths works out a bit better,” Zahos says. “They can get better room rates out of their cost base. “Brisbane needs to head more towards lifestyle and affordable accommodation options. “The way to do that is through mixed-use precincts—a combination of residential and hotel. “It deals with the housing shortage but at the same time it makes the [hotel] arithmetic work a bit better.” ▲ The residential and accommodation precinct at Vibe Hotel Adelaide. Zahos’ Lucas Zahos Architects with GuavaLime developed the Vibe Hotel Adelaide comprising 100 apartments and 123 hotel rooms that opened in 2023. “That helped reduce the land cost, the footprint and the cost base for the hotel,” Zahos says. “Also what it did was create a more active, exciting precinct because all of a sudden you’re mixing visitors with occupants.” Zahos says sharing facilities, planning costs and infrastructure can be part of a dual solution in an environment where construction constraints drive development speed. “It can be done within the same tower or across multiple buildings,” Zahos says. “It is the best way that we’re going to get those more affordable hotels rather than just the high-end.” ▲ The Mondrian, the residential and luxury hotel development on the Gold Coast. Civic Brand consultancy co-founder and author Ryan Short says uniqueness is the missing link that could bolster the triple bottom line in most cities, benefiting people, place and profit. “A strong, authentic civic brand increases the value of everything connected to it,” Short says. “Developments that reflect and reinforce a city’s identity become destinations, attracting not only tenants and customers but also investment and tourism. “They enjoy greater resilience over time because they’re not just competing on price or the newest trend and instead they’re rooted in something people care about.” Short says every city has a brand, intentional or otherwise and the Olympics are a chance to make a change. “There is nothing better than a deadline and public event to motivate you to take on tasks that are important that may have been neglected before,” Short says. “That said, I think what is really important is not to put on a costume for the rest of the world.” ▲ Antica Projects founder Rebecca King and the Baccarat Residences Miami. Antica Projects founder Rebecca King returned to Brisbane after working on The Ned in London, New York’s 1 Hotel Central Park, Soho House Austin and Baccarat Residences in Dubai and Miami. King says Rome and Austin, Texas, are key examples of how a city can reshape identity and increase room occupancy in the long term. “People want something that feels authentic and feels genuine to the place where we are and I don’t think anywhere in Brisbane is like that,” King says. “It still feels a little bit like, pseudo-Mediterranean, maybe a bit Miami ... it’s beautiful don’t get me wrong but kind of everything’s becoming a bit like that. “It’s over, it’s run its course, so we need to be looking for things with longevity and when design has a real sense of place it’s not going to date because it will always speak to the identity of the location.” ▲ The interior of the 1 Hotel in Melbourne that opened this year. King says Brisbane is ready for radical change and something unique, not just a cookie-cutter hotel solution. “Things in the design world and hospitality are stepping away from being very beige and very monochrome,” King says. “It’s always a shame to see things in Brisbane follow that [plain] trend, whereas I think we should embrace this really beautiful, colourful, subtropical vibe that we have going on here.”

Double Shortfall Hands Brisbane Growth Opportunity

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