Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
Asia-Pacific’s (Apac) hospitality field is still displaying indications of expansion, even as accommodation performance is starting to secure, claims CBRE’s latest Asia Pacific Hotels & Hospitality Performance & Outlook report.
Raised building and construction prices are expected to proceed weighing down on brand-new supply, with CBRE anticipating Apac hotel supply to attain a compound annual growth price of 2.3% in between 2024 and 2028, down from the 5% recorded over the previous decade.
While traveler arrivals in Apac have actually been on an improvement trajectory following the Covid-19 widespread, CBRE notes that since June 2025, only 3 markets in the area had gone beyond pre-2020 tourist landings: Japan, Vietnam and Korea.
CBRE’s report highlights that Apac hotel supply continues to be constricted, specifically in the high-end section. Citing data from CoStar, the firm notes that Apac has only 900 luxury hotels per billion population, much fewer than Europe (6,700) and the United States (8,500).
According to the study, hotel average daily rates (ADRs) continued to increase across many Apac industry in 1H2025, albeit at slower rates contrasted to the past number of years following relieving inflationary stress. Japan found the greatest y-o-y change at 16.9%, followed by Korea at 6.3%.
Nevertheless, Apac is positioned to lead tourism development, with the International Air Transport Association projecting earnings passenger kilometres in the region to expand by 9% in 2025, the greatest of every region worldwide.
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Strong local travel also aided move greater ADRs in India, while Indonesian ADRs have increased in reaction to dropping occupancy levels in Bali. Meanwhile, Singapore ADRs dropped y-o-y because of absorption of brand-new supply, while Thailand ADRs were negatively impacted by the quake that occurred in March, in addition to safety problems among mainland China tourists.
As hotels and resort functionality continues to recover, Apac hotel operators are switching to real-time, demand-based pricing methods that allow them react promptly to demand changes during events or top durations, claims CBRE. Other strategies being used include hyper-personalisation of guest experiences, increasing loyalty programmes and the use of AI to capture guest trends and apply smart room systems.
Additionally, investors continued to show a strong appetite for hotel properties in Apac. CBRE’s report states that Apac resort investment volume reached US$ 12.1 billion ($15.5 billion) in the initial eight months of 2025, putting it on record to finish the year near to last year’s US$ 16.3 billion, which established a brand-new log high. Liquid market place upheld by solid industry fundamentals, including Japan, Korea, Australia and Singapore, continue to steer investment amount.
