Figures
Asia Pacific Hotel Trends Q1 2025
April 16, 2025 5 Minute Read
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- With ADR stabilising slightly below 2018 levels, hotel owners in Hong Kong SAR are adopting a more creative approach to boost hotel performance through asset management, rebranding, and potential conversions. The limited upcoming supply pipeline is putting the onus on investors to boost asset value through CapEx to remain competitive and increase the top line; work with international operators to set up distribution and loyalty programmes; and assess F&B/retail options to support income.
- Hotels in India continue to perform strongly, led by solid growth in markets such as Hyderabad, Chennai, and Bangalore on the back of strong domestic tourism demand and a growing MICE scene. While direct investment opportunities remain limited, investors are targeting greenfield development in growing tier III and tier IV markets with a focus on midscale and upper midscale product.
- Japan continues to report strong hotel performance, supported by the strongest international tourism inflows of any market worldwide. Investors remain on the lookout for acquisitions and competition is increasing as core domestic investors increase their presence. Investor interest in cities outside of Tokyo, Osaka and Kyoto is picking up amid expectations that these markets will capture further growth in 2025 and beyond.
