Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
CBRE’s report highlights that Apac hotel supply continues to be constricted, especially in the high-end sector. Pointing out data from CoStar, the firm notes that Apac has only 900 high-end resorts per billion population, much less than Europe (6,700) and the United States (8,500).
Nevertheless, Apac is positioned to lead tourism growth, with the International Air Transport Association projecting earnings passenger kilometres in the region to expand by 9% in 2025, the highest of any location around the world.
As hotel performance continues to recoup, Apac hotel drivers are converting to real-time, demand-based pricing methods that allow them respond quickly to demand changes during events or optimal durations, claims CBRE. Various other strategies being utilized consist of hyper-personalisation of guest experiences, increasing loyalty programs and the utilization of AI to capture guest trends and implement smart room technology.
Strong local travel also aided propel greater ADRs in India, whilst Indonesian ADRs have risen in response to dropping tenancy levels in Bali. On the other hand, Singapore ADRs fell y-o-y due to absorption of new supply, whilst Thailand ADRs were badly affected by the earthquake that took place in March, as well as security issues amongst mainland China travellers.
Raised building and construction expenses are anticipated to proceed weighing down on new supply, with CBRE forecasting Apac hotel source to obtain a compound yearly growth rate of 2.3% between 2024 and 2028, down from the 5% reported over the previous years.
Asia-Pacific’s (Apac) hospitality market is still showing indications of expansion, even as accommodation performance is starting to secure, says CBRE’s most current Asia Pacific Hotels & Hospitality Performance & Outlook report.
Additionally, investors remained to show a good yearning for hotel investments in Apac. CBRE’s record states that Apac resort financial investment volume got to US$ 12.1 billion ($15.5 billion) in the first 8 months of 2025, putting it on track to finish the year near last year’s US$ 16.3 billion, that set a brand-new log high. Liquid market place backed by solid market fundamentals, involving Japan, Korea, Australia and Singapore, continue to generate investment amount.
While traveler arrivings in Apac have gotten on a recovery movement following the Covid-19 widespread, CBRE observes that as of June 2025, just three markets in the area had actually surpassed pre-2020 tourist appearances: Japan, Vietnam and Korea.
According to the report, hotel average daily rates (ADRs) continued to rise throughout the majority of Apac markets in 1H2025, albeit at slower rates compared to the last couple of years following relieving inflationary pressure. Japan saw the best y-o-y adjustment at 16.9%, followed by Korea at 6.3%.
