Rising tourism, investment activity driving Apac’s hotel sector outlook: CBRE
According to the record, hotel average daily rates (ADRs) remained to go up throughout most Apac industry in 1H2025, albeit at slower rates contrasted to the past couple of years following easing inflationary stress. Japan saw the highest y-o-y change at 16.9%, followed by Korea at 6.3%.
Whilst tourist landings in Apac have been on an improvement trajectory following the Covid-19 widespread, CBRE observes that since June 2025, just three markets in the region had gone beyond pre-2020 tourist landings: Japan, Vietnam and Korea.
CBRE’s report highlights that Apac hotel supply continues to be constricted, particularly in the deluxe sector. 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).
As hotel efficiency continues to recoup, Apac resort operators are switching to real-time, demand-based pricing methods that help them respond swiftly to demand adjustments during events or peak durations, says CBRE. Other approaches being used consist of hyper-personalisation of visitor experiences, increasing loyalty programmes and the utilization of AI to capture visitor trends and apply smart room systems.
Asia-Pacific’s (Apac) hospitality sector is still presenting indications of progress, even as hotel performance is beginning to secure, claims CBRE’s most current Asia Pacific Hotels & Hospitality Performance & Outlook report.
Raised construction prices are anticipated to continue weighing down on brand-new supply, with CBRE anticipating Apac hotel supply to obtain a substance yearly development rate of 2.3% between 2024 and 2028, down from the 5% documented over the last decade.
Nevertheless, Apac is positioned to lead tourist growth, with the International Air Transport Association forecasting revenue passenger kilometres in the region to expand by 9% in 2025, the greatest of every region internationally.
Solid domestic tourist also helped move greater ADRs in India, whilst Indonesian ADRs have actually increased in reaction to dropping tenancy levels in Bali. On the other hand, Singapore ADRs dropped y-o-y as a result of absorption of new supply, whilst Thailand ADRs were negatively influenced by the quake that took place in March, as well as safety issues among mainland China tourists.
At the same time, investors continued to reveal a good appetite for hotels and resort assets in Apac. CBRE’s record states that Apac hotel investment quantity reached US$ 12.1 billion ($15.5 billion) in the initial eight months of 2025, putting it on track to end the year near last year’s US$ 16.3 billion, that set a new record high. Liquid markets upheld by strong industry fundamentals, featuring Japan, Korea, Australia and Singapore, remain to steer financial investment volume.
