Hospitality

Tailored restructuring, turnaround and growth solutions for Australia’s entertainment economy.

Serving the hospitality sector with tailored restructuring and growth strategies.

Australia’s hospitality industry is always the bellwether for the economy; it’s the first to see changes in discretionary expenditure and improvements in consumer sentiment. The overall trend in 2025 has been upward, but diners are still being cautious with their spending. Programmes like Eat Club are driving discount diners in non-peak times. We have also seen a rise in new operators in both the food and accommodation sectors, driving buzz and spending. However, the hospitality sector still faces significant challenges, recording some of the highest rates of insolvencies.

The sector is expected to be one of the biggest beneficiaries of AI, helping them reduce costs by identifying and capitalising on revenue opportunities.

At Olvera, we believe that hospitality operators can thrive with the right solutions.

We help owners, lenders, and managers stabilise their operations, unlock working capital, and position assets for value in a market where demand is recovering, but costs and insolvency risk remain high.
KEY TRENDS

What We’re Seeing in the Hospitality Industry

Hospitality players are undergoing a period of rapid changes.
Restaurants & Bars

Full-service, casual, and specialty venues are working hard to balance rising operational costs while delivering an exceptional customer experience. Wage increases, labour shortages, and higher superannuation contributions are adding to the pressure, while utilities and insurance remain high.

Operators are also experiencing demand pressure as diners close their wallets, either decreasing cheque spend or chasing discount opportunities through diner programmes like Eat Club.

Quick service restaurant (QSR) chains, kiosks, and ghost kitchens are facing mounting headwinds. Platform fees and customer acquisition costs erode their margins, while volatility in key ingredients such as chicken, dairy, and fresh produce impacts their consistency. We also see franchises facing mounting pressure from franchisees over franchise costs, advertising surcharges and underperforming store locations.
Government and public health advocates are pressing regulators and venues for stronger, better-targeted harm controls. NSW and Victoria are introducing cashless cards focused on high-risk harm reduction. Operators across clubs, hotels, and venues with gaming machines are managing higher compliance costs at a time when demand is softening, especially in sports clubs and RSLs, whose memberships are in decline.
From boutique properties to large portfolios, accommodation providers are experiencing strong growth as undersupply in select markets affects both rates and occupancy. This is expected to continue to the end of the decade as old hotel properties are converted to apartments, reducing supply, major cities crack down on short-term stays, and the lead time in new properties coming online.

The entertainment industry, encompassing production, post-production/VFX, distribution, and streaming, is navigating a downturn, with production spend expected to fall to A$1.7 billion in 2023/24. Policy uncertainty, shifting content quotas, and streamer rationalisation are also impacting commissioning confidence among stakeholders as we work through the oversupply from covid.

Our restructuring and Safe Harbour expertise provides space for operators to preserve value and position for recovery, while our working capital and profit improvements teams can increase liquidity and decrease costs through supplier tender management and rostering analysis.to give you better clarity about your business.

Statistics

Statistics at a Glance

Australia recorded 7.7 million international visitors in the year to March 2025. Travellers spent $35.5 billion locally.
Tourism supported approximately 706,400 hospitality jobs in the March quarter 2025, representing 1 in every 23 jobs nationally. This represents a 3.0% yearover-year increase
The tourism sector contributed $78.1 billion to GDP in FY2023–24, with 691,500 tourism-filled jobs recorded in the latest annual national accounts.
Hotel performance remained steady with a national occupancy of 71% in 2024. The industry recorded an Average Daily Rate (ADR) of $240 and a Revenue per Available Room (RevPAR) of $171, though growth is starting to moderate.
Domestic travel softened in the year ending March 2025, with spend down 2%, trips down 1%, and nights down 2% compared with the previous year. This is amid weather disruptions and Easter timings.
Labour expenses are set to rise with national minimum and award wages increasing 3.5% from 1 July 2025, following the update to the Hospitality Award.
HOW WE CAN HELP

Our Hospitality Expertise

With decades of advisory experience, we support businesses with effective risk management, insolvency, and restructuring strategies. Here is how we can help;

Rapid Diagnostics

Quick assessments within 2 to 4 weeks on venues and accommodation performance, including P&Ls, labour models, COGS, pricing architecture, revenue mix, and lease terms, CAPEX, debt, and tax positions.

Working Capital Release

Assistance in building working capital through Olvera’s Rapid Cash Framework to reduce debtor days, manage creditor returns, and optimise inventory levels to reduce waste.

Stabilise & Restructure

Assistance in implementing Safe Harbour frameworks, contingency planning, and creditor negotiations, as well as guidance through voluntary administration, DOCA, or Small Business Restructuring. maximisation through supply chain tenders.

The Olvera Difference

Why Partner with Us?

With decades of combined restructuring and advisory experience, our team offers sound advice in all business scenarios.

Solution Focused

We focus on maximising returns and planning for the best outcomes. With milestones and value-based billings, our goal is always to find the right solutions first.

Intelligently Innovative

Working in small teams, we believe in delivering creative, executable plans. Our team is highly resource-driven, utilising our vast networks whenever possible.

Relationship Driven

We see the people and potential behind the numbers. Our service is personable and long-term focused, with the right balance between financial and individual.

Olvera Guides

Restructuring & Turnaround Guide

Download Olvera’s Restructuring & Turnaround service guide for an informative overview of our offerings and industry experience.
Our Experts

Olvera’s Hospitality Experts

Our team of specialist advisors are dedicated to providing expert guidance and personalised solutions for your business.

Damien Hodgkinson

Principal

Damien develops strategic solutions for groups dealing in crisis management and/or distress investment.

Neil Cussen

Neil Cussen

Principal

Neil Cussen, a leading authority in insolvency and restructuring, offers 35 years of experience, excelling in asset tracing, business recovery, and cross-border insolvencies.

Case Studies

Olvera’s Case Studies

Read about our successful client case studies. 

Resources

Latest Insights, News, and Reports

Read our latest articles and insights on the world of business insolvency in Australia.

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