Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
Raised construction costs are anticipated to continue weighing down on brand-new supply, with CBRE forecasting Apac hotel supply to attain a substance yearly development price of 2.3% between 2024 and 2028, below the 5% documented over the previous decade.
Nonetheless, Apac is positioned to lead tourist growth, with the International Air Transport Association forecasting profits passenger kilometres in the region to grow by 9% in 2025, the highest possible of any region globally.
Strong local travel also helped drive higher ADRs in India, while Indonesian ADRs have increased in response to dropping tenancy amounts in Bali. Meanwhile, Singapore ADRs fell y-o-y because of absorption of brand-new supply, while Thailand ADRs were negatively affected by the quake that took place in March, along with safety and security issues among mainland China visitors.
Asia-Pacific’s (Apac) hospitality sector is still showing indicators of expansion, even as hotel performance is beginning to stabilise, states CBRE’s latest Asia Pacific Hotels & Hospitality Performance & Outlook record.
CBRE’s record emphasize that Apac hotel supply stays constricted, particularly in the deluxe sector. Mentioning data from CoStar, the firm notes that Apac has only 900 deluxe resorts per billion population, much fewer than Europe (6,700) and the US (8,500).
As hotel functionality continues to recoup, Apac hotel drivers are converting to real-time, demand-based pricing methods that help them react rapidly to demand changes throughout events or height periods, claims CBRE. Other strategies being utilized include hyper-personalisation of guest experiences, expanding loyalty programmes and the utilization of AI to capture visitor patterns and carry out smart room systems.
Furthermore, financiers continued to present a good desires for accommodation assets in Apac. CBRE’s record states that Apac hotel investment amount reached US$ 12.1 billion ($15.5 billion) in the initial 8 months of 2025, placing it on track to end the year near to last year’s US$ 16.3 billion, that established a new log high. Liquid markets upheld by solid market fundamentals, including Japan, Korea, Australia and Singapore, continue to drive financial investment quantity.
According to the report, hotel average daily rates (ADRs) continued to increase throughout the majority of Apac markets in 1H2025, albeit at slower rates compared to the past number of years following alleviating inflationary stress. Japan observed the highest y-o-y improvement at 16.9%, followed by Korea at 6.3%.
Whilst tourist arrivals in Apac have actually been on an improvement trajectory following the Covid-19 pandemic, CBRE monitors that since June 2025, only three markets in the region had exceeded pre-2020 tourist landings: Japan, Vietnam and Korea.
