Thinking of Buying a Resort Business in Australia? Here Are 3 Vital Questions to Ask
The Australian resort industry is valued at $14.8 billion in 2024, with an expected annual growth rate of 2.6% through 2029-30.
Luxury resorts dominate the market, accounting for 49.3% of total revenue, driven by high-spending international visitors.
Average occupancy rates have recovered to 71.4%, reflecting strong demand for premium accommodation and exclusive travel experiences.
While competition from Airbnb and boutique lodges is rising, resorts remain a lucrative investment for buyers targeting corporate retreats, eco-tourism, and high-end leisure travellers.
However, financial viability, competitive differentiation, and regulatory compliance must be carefully evaluated before investing.
1. Is the Business Financially Stable and Profitable?
Why It Matters
Resorts operate with multiple revenue streams, including room bookings, spa services, dining, and event hosting.
While the industry-wide profit margin stands at 10.8%, luxury resorts often achieve higher returns.
However, operational costs, seasonal fluctuations, and guest retention strategies play a critical role in long-term profitability.
What to Check
- Revenue trends & profit margins – Review financial statements from the last three to five years to assess profitability and cost structure.
- Occupancy rates & seasonal demand – Compare with industry benchmarks (71.4% average) to identify off-peak trends and year-round stability.
- Cost management & labour efficiency – Labour accounts for 26.8% of industry revenue, making wage control essential for profitability.
- Revenue diversification opportunities – Assess additional income sources, such as wellness retreats, event hosting, and high-end dining.
2. How Competitive is the Business’s Market Position?
Why It Matters
The resort sector is highly competitive, with large chains like Accor and Marriott expanding, while boutique resorts gain traction in niche markets.
Properties in prime locations that offer exclusive experiences, luxury services, and strong brand differentiation tend to perform best.
What to Check
- Location & market demand – Evaluate proximity to beaches, vineyards, or exclusive retreat destinations that drive premium bookings.
- Independent vs. franchise model – Determine whether the business benefits from established branding, corporate partnerships, and loyalty programs.
- Guest experience & online reputation – Analyse customer reviews, as high-end travellers rely on reputation when selecting resorts.
- Competitive differentiation – Identify whether the business offers eco-tourism experiences, wellness retreats, or private luxury accommodations.
3. Is the Business Aligned with Industry Trends and Future Growth?
Why It Matters
Resorts that adapt to evolving travel trends—such as eco-tourism, corporate wellness retreats, and AI-driven hospitality—are better positioned for long-term success.
Investors should evaluate sustainability initiatives, technology integration, and expansion opportunities.
What to Check
- Sustainability & eco-tourism integration – Determine eligibility for government incentives supporting solar energy, carbon neutrality, and eco-friendly initiatives.
- Technology & automation – Assess the use of online booking systems, dynamic pricing models, and AI-driven guest services.
- Corporate travel & high-value tourism – Identify potential for business retreats, luxury weddings, and wellness packages to drive year-round bookings.
- Regulatory & compliance considerations – Review liquor licensing, short-stay rental regulations, and environmental protection laws.
Ready to Invest in a Thriving Resort Business?
With strong demand for luxury travel, wellness tourism, and exclusive experiences, the Australian resort industry presents a premium investment opportunity.
However, financial sustainability, competitive market positioning, and adaptability to evolving guest preferences are key to long-term success.
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