Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
Elevated construction costs are anticipated to continue weighing down on new supply, with CBRE predicting Apac hotel supply to attain a compound annual growth price of 2.3% in between 2024 and 2028, below the 5% documented over the previous years.
As hotel functionality remains to recuperate, Apac resort operators are switching to real-time, demand-based pricing techniques that help them react rapidly to demand changes during events or top durations, says CBRE. Other approaches being employed include hyper-personalisation of guest experiences, expanding loyalty programmes and the use of AI to capture guest patterns and implement smart room technology.
Furthermore, investors remained to reveal a strong desires for hotel investments in Apac. CBRE’s report states that Apac hotel investment amount got to US$ 12.1 billion ($15.5 billion) in the first eight months of 2025, placing it on record to finish the year near to last year’s US$ 16.3 billion, which set a new record high. Liquid markets upheld by solid market fundamentals, featuring Japan, Korea, Australia and Singapore, continue to generate investment volume.
Asia-Pacific’s (Apac) hospitality market is still presenting indicators of growth, even as accommodation performance is starting to secure, says CBRE’s most recent Asia Pacific Hotels & Hospitality Performance & Outlook record.
Whilst tourist arrivings in Apac have actually gotten on a recuperation trajectory following the Covid-19 widespread, CBRE observes that as of June 2025, only three industry in the region had actually exceeded pre-2020 tourist landings: Japan, Vietnam and Korea.
Strong local tourism also helped propel greater ADRs in India, whilst Indonesian ADRs have increased in feedback to falling occupancy amounts in Bali. Meanwhile, Singapore ADRs fell y-o-y because of absorption of brand-new supply, whilst Thailand ADRs were negatively impacted by the earthquake that occurred in March, as well as safety and security worries among mainland China tourists.
CBRE’s report feature that Apac hotel supply continues to be constrained, especially in the deluxe sector. Citing information from CoStar, the firm notes that Apac has only 900 deluxe hotels per billion populace, much fewer than Europe (6,700) and the US (8,500).
According to the report, hotel average daily rates (ADRs) continued to rise across many Apac industry in 1H2025, albeit at slower rates contrasted to the past number of years following relieving inflationary pressure. Japan viewed the highest y-o-y change at 16.9%, followed by Korea at 6.3%.
Nevertheless, Apac is positioned to lead tourism growth, with the International Air Transport Association forecasting earnings passenger kilometres in the area to expand by 9% in 2025, the greatest of every region internationally.
