26 Aug 2025
Words Peter Carruthers Cairns Post

Motel Report 2025 values sector nationwide at more than $15bn

Transforming tired Cairns motels is the focus of a new strategy aiming to attract a different kind of guest by creating chic and boutique properties.

Recently launched at Crystalbrook Flynn, the Motel Report 2025 aims to provide the motel sector with its first industry snapshot.

The scale of the sector in terms of asset value has been largely guesswork but now new investigations by RB Research has put the sector’s nationwide value at more than $15bn.

As construction costs soar, this report aims to reimagine motels as stylish, boutique accommodations for workers and business travellers.

By blending old-world charm with modern appeal, these roadside properties can offer a fresh and inviting alternative, says Far North Queensland resort broker Leah Bursztynowicz.

“One of the outlooks in Motel Report 2025 is that investors are looking to reposition older properties in order to appeal to motels’ new guest profile,” she said.

“Many motels, traditionally considered workers’ or business accommodation, are enjoying newfound popularity among domestic tourists.”

A good example is Cairns Queens Court on Sheridan St which was built in 1998.

The 81-room motel sold to Sydney-based Quay Wholesale Fund Services in March for $7.4m. The fund has plans to rebrand the property as a K2 hotel following the success of K2 Brisbane.

Three Crystalbrook hotels opened in the CBD before the Covid pandemic, but since then, there has been a noticeable lack of new accommodation construction throughout the Far North.

With current occupancy levels sitting at about 77 per cent across the region, Ms Bursztynowicz said demand was clearly there.

Tower accommodation developments, including Alex Sekler’s Cairns Post building, have been languishing on the drawing board since being approved by Cairns Regional Council in early 2024.

Frank Gasparin’s Galleria tower, which was approved in May this year, is also yet to get underway.

RE/MAX Cairns broker and owner Tony Williamson said, in terms of developer confidence, cranes in the sky over Cairns would send a clear message.

“The reality is, as soon as one developer puts a crane up I think you’ll see a lot more,” he said.

“Nova was such a disappointment, Aquis was such a disappointment, we have had a lot of false starts and we really need someone to get a crane up and start building again.

“They are all waiting for that first guy to do it.”

The Motel Report 2025 roadshow will this week head to Sydney after being well attended by vendors, multi-owners, valuers, developers and industry leaders in Cairns last week. END