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Asia Pacific Hotel Trends Q3 2024
October 15, 2024 5 Minute Read
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- Singapore’s strong events and concerts scene, headlined by Taylor Swift and Formula 1, has ensured hotel performance remains buoyant so far in 2024. The luxury segment remains the top performer, with the strong return of mainland Chinese tourists underpinning demand. With operational costs rising, investors are looking more closely at both limited-service assets and conversion opportunities.
- Japan remains one of the world’s most popular international tourist destinations, aided partly by the weak Yen, which makes the country especially attractive from a cost perspective. Tokyo, Osaka, Kyoto, Fukuoka and Okinawa are the top destinations, with ADRs in these markets up 25%+ y-o-y. While the recent appreciation of the Yen may rein in the recent explosive growth of foreign tourism, domestic demand should offset any weakness following a period of strong wage growth, which has boosted local spending power.
- The Maldives continues to witness stable tourism inflows and hotel performance. To increase tourism, the MVIA and Hanimadhoo airports are receiving extensive upgrades to accommodate an extra 8.8 million passengers combined. With some new supply coming to the market, and a greater preference for guest houses over traditional hotels, hotel owners are increasingly considering refurbishment and rebranding exercises to enhance value.
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Business Contacts
Ananth Ramchandran
Head of Advisory & Strategic Transactions, Hotels & Hospitality, Asia
Michael Simpson
Head of Hotels & Hospitality, Pacific
Tomotsugu Ichikawa
Executive Director, Hotels, Capital Markets
