Australia Boutique Hotel Market Size, Share, and COVID-19 Impact Analysis, By Type (Budget, Luxury, and Mid-Scale), By Booking Mode (Online Travel Agencies, Direct Booking, and Travel Agents), and Australia Boutique Hotel Market Insights, Industry Trend, Forecasts to 2035

Australia Boutique Hotel Market Size Insights Forecasts to 2035

• The Australia Boutique Hotel Market Size Was Estimated at USD 524.7 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 10.32% from 2025 to 2035
• The Australia Boutique Hotel Market Size is Expected to Reach USD 1546.2 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Australia Boutique Hotel Market Size Is Anticipated To Reach USD 1546.2 Million By 2035, Growing At A CAGR Of 10.32% From 2025 To 2035. The boutique hotel market in Australia is driven by Rising demand for experiential travel, domestic travel, individualized stays, rising disposable incomes, urban renewal initiatives, and widespread use of digital booking platforms.

Market Overview

The Australia boutique hotel market refers to small, design-focused hospitality properties that provide personalized services and unique themes and premium guest experiences. The applications serve various tourist needs which include leisure tourism and business travel and luxury getaways and experiential stays for travellers who want authentic experiences and comfortable accommodations and personalized services. Australia uses boutique hotels as accommodation options which help urban centers and coastal destinations and heritage locations to develop their tourism industry while providing short-stay lodging and high-end hospitality services.

The Australian Government has dedicated $48 million to support tourism recovery efforts through its tourism and travel support package which includes a $10 million grant for a hospitality training platform and an $8 million investment in the Quality Tourism Framework to improve service standards. The government provides financial assistance through regional funds and specific grants which enable accommodation operators to improve their facilities while drawing more customers to their businesses.

The Australian boutique hotel market has seen new developments through innovative property renovations and the opening of new boutique hotels which include historic buildings that are being transformed into boutique hotels and local lifestyle brands that are entering the market. Operators use technology and environmentally sustainable methods together with customized services to improve guest experiences while competing against major hotel brands. The upcoming business potential will emerge through wellness tourism and experiential travel and regional development and smart sustainable hospitality solutions.

Report Coverage

This research report categorizes the market for the Australia boutique hotel market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia boutique hotel market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia boutique hotel market.

Driving Factors

The boutique hotel market in Australia is driven by the traveller’s demand personalized and experiential travel experiences, domestic tourism increases, and visitors choose distinctive accommodations that feature exceptional architectural designs. The market experiences growth because people have more money to spend, urban areas undergo development projects, and tourist activity increases in various regional locations. The increasing use of digital booking platforms and the impact of social media together with sustainability-focused services drive market growth because travellers now prefer wellness and authentic local experiences instead of traditional hotel stays.

Restraining Factors

The boutique hotel market in Australia is mostly constrained by the property and operating expenses remain high while labor shortages exist and demand patterns change between different seasons and hotels compete directly with both major hotel chains and short-term rental services. New developments and their ability to generate profits face obstacles from regulatory requirements and limited growth potential and increasing expenses for construction projects.

Market Segmentation

The Australia boutique hotel market share is classified into type and booking mode.

• The luxury segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Australia boutique hotel market is segmented by type into budget, luxury, and mid-scale. Among these, the luxury segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. Due to the growing demand for upscale, customized experiences from affluent domestic and foreign tourists, luxury boutique hotels draw longer stays and higher room prices. Compared to mid-scale and budget categories, their emphasis on wellness, design, upscale amenities, and carefully chosen local experiences results in higher income per property.

• The online travel agencies segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. 

The Australia boutique hotel market is segmented by booking mode into online travel agencies, direct booking, and travel agents. Among these, the online travel agencies segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. Travelers favor online travel agencies (OTAs) like Booking.com, Expedia, and Agoda because they provide broad exposure, price comparison, rapid reservations, and mobile-friendly platforms. Bookings for boutique hotels are greatly increased by their robust digital marketing reach, package offers, client testimonials, and expanding mobile adoption, which fuels their current supremacy.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia boutique hotel market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• QT Hotels & Resorts
• Ovolo Hotels
• Art Series Hotels
• Veriu Hotels & Suites
• Lancemore Hotels & Resorts
• Federal Group
• Gambaro Group
• The Standard
• Kimpton Hotels
• Independent boutique properties & developers
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In February 2026, the 175-room Elysium Noosa Resort (MGallery Collection) opens on Hastings Street.

• In September 2025, Hotel Indigo Melbourne Little Collins opens as part of IHG's dual-branded expansion in Melbourne's central business district.

• In June 2025, the Gold Coast's first Mondrian hotel, with 208 rooms close to Burleigh Beach, opens.

• In May 2025, the development of the Noosa Springs Boutique Hotel was permitted, increasing the capacity for upscale lodging in the future.

Market Segment

This study forecasts revenue at the Australia, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Australia boutique hotel market based on the below-mentioned segments:

Australia Boutique Hotel Market, By Type

• Budget
• Luxury
• Mid-Scale

Australia Boutique Hotel Market, By Booking Mode

• Online Travel Agencies
• Direct Booking
• Travel Agents