In HM’s 2024-2025 Hotel Development Outlook, Hilton Director of Development, Australasia, Tushar Raniga, talks key market trends and the demands of today’s hotel owners.
The Australian hotel development sector is currently navigating the significant challenge of rising development costs. As a response, innovative solutions such as modular development are gaining traction, a concept that Hilton recently showcased at AHICE with the Hilton Garden Inn room prototype.
The recently signed Hilton Garden Inn Townsville, set to open in 2026, is a prime example of this approach.
To stimulate growth in the upscale segment, we introduced the Hilton Garden Inn brand to Australasia in 2021. With plans to triple its presence over the next five years, this brand utilises a kit-of-parts approach, offering developers a transparent and well-considered design.
A similar strategy is being adapted for a mid-tier product, slated for launch later this year.
Furthermore, the escalating development costs are leading to a slowdown in new developments, resulting in an uptick in conversions across the region.
Owners are seeking alignment with platforms that can enhance distribution and minimise costs. Backed by a global network of over 190 million Hilton Honors Members, Hilton’s distribution engine ensures greater revenue flow to owners.
Sustainability has become a paramount concern, with Hilton committed to reducing its environmental footprint by half and doubling its social impact by 2030. This pledge aligns with the growing global consciousness of environmental issues and the increasing importance of sustainability in the hospitality industry.
Lastly, the region is witnessing a surge in franchising, driven by owners seeking more flexibility and control over hotel operations. In response, Hilton launched its franchise platform in Australasia in 2023.