Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
Asia-Pacific’s (Apac) hospitality field is still displaying signs of progress, even as hotel performance is starting to stabilise, claims CBRE’s most recent Asia Pacific Hotels & Hospitality Performance & Outlook statement.
CBRE’s record highlights that Apac hotel supply continues to be constrained, specifically in the deluxe section. Pointing out data from CoStar, the firm notes that Apac has only 900 high-end hotels per billion population, much fewer than Europe (6,700) and the US (8,500).
Raised building and construction costs are expected to continue bearing down on brand-new supply, with CBRE forecasting Apac hotel source to achieve a compound annual development rate of 2.3% between 2024 and 2028, down from the 5% recorded over the last decade.
According to the study, hotel average daily rates (ADRs) remained to ascend throughout most Apac markets in 1H2025, albeit at slower rates contrasted to the past number of years following easing inflationary stress. Japan observed the greatest y-o-y improvement at 16.9%, followed by Korea at 6.3%.
Strong local tourist also helped move higher ADRs in India, while Indonesian ADRs have risen in response to dropping tenancy status in Bali. Meanwhile, Singapore ADRs fell y-o-y due to absorption of new supply, whilst Thailand ADRs were badly impacted by the earthquake that occurred in March, as well as safety problems amongst mainland China visitors.
As hotels and resort efficiency remains to recoup, Apac hotel drivers are switching to real-time, demand-based pricing techniques that allow them respond quickly to demand changes during events or optimal periods, claims CBRE. Other strategies being utilized include hyper-personalisation of visitor experiences, increasing loyalty programs and the use of AI to capture visitor trends and apply smart room technology.
Nevertheless, Apac is positioned to lead tourism development, with the International Air Transport Association projecting profits passenger kilometres in the region to expand by 9% in 2025, the highest of every area internationally.
While tourist landings in Apac have been on a recovery trajectory following the Covid-19 widespread, CBRE monitors that since June 2025, only 3 markets in the area had gone beyond pre-2020 tourist appearances: Japan, Vietnam and Korea.
At the same time, capitalists continued to reveal a solid desires for accommodation assets in Apac. CBRE’s record states that Apac hotel financial investment volume reached US$ 12.1 billion ($15.5 billion) in the initial 8 months of 2025, putting it on track to finish the year close to last year’s US$ 16.3 billion, which established a brand-new log high. Liquid markets supported by solid industry fundamentals, involving Japan, Korea, Australia and Singapore, continue to generate investment amount.
