In this blog/video, we discuss how it's just 7 years until the 2032 Olympics, and Queensland is facing a predicted shortfall of 30,000 hotel rooms. Construction costs have more than tripled. Planning delays are mounting. And many developers are walking away.

This is more than a tourism problem - it’s a legal and infrastructure crisis in the making.
If you’re in QLD property, you need to read this...maybe it's time to buy an investment?! 

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Hi everybody - George Sourris, Empire Legal.

Today's topic:  Brisbane's Olympic hotel crunch. Why the clock is ticking - NOW!

Brisbane is racing towards the 2032 Olympics, but the city's accommodation pipeline is falling drastically behind. Thank you to the Courier Mail for providing the majority of information for this week's topic. Industry insiders are warning of a critical shortfall of up to 30,000 hotel rooms across Southeast Queensland.

Over the past five years, only 820 new rooms have been delivered, a staggering 90% drop from the previous period. That slowdown, paired with surging construction costs is creating one of the biggest supply challenges the city has ever faced. Developers want to build, but right now the numbers simply don't stack up.

Brisbane 2032 president Andrew Liveris has stated the region's predicted hotel shortage keeps him up at night. Data from the Queensland Tourism Industry Council suggesting an estimated 76,000 rooms are needed, and current numbers predict a 30,000 room shortfall.

Why hotel projects are stalling.

The economics have become brutal. The cost to build a hotel room has jumped from roughly $200,000 per key to as much as a million dollars per room, in new five star projects. For those wondering, a "key" is hotel lingo "per room". So, a 50 key hotel means 50 rentable rooms. Land tax, stamp duty, and foreign investor surcharges are biting into margins.

And even once a project makes financial sense, planning approvals can drag for months or even years. Some investors who had planned to ride the Olympics wave are now walking away, citing delays, uncertainty, and exit risk in a softening property cycle, repurposing or offloading a half-built hotel is an expensive problem few are willing to inherit. It's a perfect storm. Demand is surging, but delivery is gridlocked.

The Olympic pressure cooker. 

The clock is ticking, and there doesn't seem to be a feasible solution as yet. The 2032 Games are expected to draw millions of visitors to Queensland, and the hospitality sector is already warning that without urgent policy action, the state will struggle to house them. The hotel shortage isn't just a tourism issue, it's a planning, infrastructure and legal risk issue all rolled into one.

Developers working near Olympic precincts face tight timelines, complex overlay approvals, and rising community resistance to high-rise proposals. Some Olympic related projects have been granted fast track or exemption statuses under the state planning frameworks, but those shortcuts can backfire. When heritage, environmental, or cultural consultation is skipped, legal challenges can quickly follow.

The Victoria Park Stadium Debate is always a prime example, a flashpoint between government ambition and community expectation, that could set the tone for future disputes.

The developers are still charging ahead.

Despite the headwinds, a few players are finding creative ways to push forward. The Comiskey Group, known for building and self-operating its own hospitality venues, is moving ahead with new hotels by keeping everything in-house. A model that avoids the inflated contractor margins crippling many competitors. According to their books, they have a plan to build 1,000 rooms by 2032.

Closer to the CBD Pelicano Group has reworked plans for a 25 story tower in Spring Hill, pivoting from a purely residential design, to include 144 hotel rooms and 116 short stay apartments. By adopting an existing approval, they've cut through the red tape that would normally stall a new development.

And at South Bank, a $100 million Novatel Tower has been proposed, one of the few large scale hospitality projects still on the books. These projects show it still can be done, but they're the exception, not the rule.

The legal and strategic reality.

For property players, the lesson is simple. If you're thinking about a hotel, short stay or mixed use accommodation in Brisbane, you can't afford to wait. Approvals need to be lodged years before 2029, if they're to be operational in time for the games. Developers should also think about flexibility. Contracts and funding arrangements need built-in protections against future zoning or policy changes.

Projects should allow for pivoting between hotel, residential or hybrid short stay models, If the economics shift again. It's equally important to get the community and cultural consultations right from the start. The legal risks of ignoring it can delay projects longer than any DA backlog ever could.

The bottom line.

Brisbane's hotel shortage isn't a distant problem, it's a right now problem. The 2032 Olympics have put the city on the global stage, but without thousands of new rooms, visitors may find themselves staying as far away as the Sunshine Coast or the Gold Coast.

For investors and developers, this is both a warning and an opportunity. The window to secure approvals, funding, and sites is closing fast. Because, by the time the starting gun fires in 2032, those who hesitated will already be out of the race.

For everything Queensland property related, please think Empire Legal. We help thousands of Queenslanders buy and sell homes every year and would love to help anyone who wants a smooth sail, all the way to settlement. Guys, if you learnt something about the new Olympics, the news, the hotels, please give this a like a share or a comment or all three. Thanks again. We'll see you next week.

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Guys, that's it for this week. Hope you learned a thing or two. Please feel free to get in touch if you've got any questions. Empire Legal - happy to help. Queensland's trusted choice for conveyancing. Over 2,700 Google reviews with a five star average. There's not many firms out there that have that five star average. With that many reviews, guys, and not to mention over 12,000 deals settled. Thanks guys. We'll see you next week.

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Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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