07/02/2026
Across Australia, hotel fundamentals have tightened materially over the past 12 to 18 months. Investment volumes rebounded through 2025, major event periods have pushed occupancies into the mid to high 90% range, and ADR and RevPAR uplifts of 20% to 30% during peak windows are now common. At the same time, new hotel supply remains constrained.
This is a rare position to be in.
- When markets are weak, decisions are reactive.
- When markets are strong, there is room to plan properly.
The challenge is that many hotels were not designed for how people now use space. Public areas remain underutilised for large parts of the day. Food and beverage peaks hard, then drops away. Gyms, lounges and lobbies operate as isolated functions. Dwell time outside of rooms remains low relative to the square metres allocated.
Globally, we are seeing a shift toward third-space thinking inside hotels. Integrated lifestyle hubs that extend dwell time, smooth revenue across dayparts, and attract both guests and locals. Not coworking. Not just bars. Not wellness in isolation. But spaces that work harder, for longer.
The first questions developers ask are always the right ones:
- How much space will this take?
- What does it cost to deliver?
- What is the realistic return?
- How does this affect in-house guests?
- Who operates it and how is it managed day to day?
These are not design questions. They are master planning questions.
At LikeMinds Studio, we work with developers and hotel groups early, before layouts are fixed and before operators are locked in, to answer these questions properly. We help test spatial efficiency, pressure-test capital spend, model revenue upside, and design operating structures that integrate seamlessly with the hotel rather than disrupt it.
Through strategic master planning and our network of food, beverage, wellness and fitness operators, we help unlock additional revenue streams from underperforming square metres while protecting the guest experience.
This is not about adding features.
It is about designing hotels that function better across the full day.
The hotels that get this right will define the next cycle.
The ones that don’t will keep competing on rooms alone.
More to come.
