2022 Asia Pacific Hotels and Hospitality A Roadmap to Recovery

Confidence in Asia Pacific’s Hotels & Hospitality market continues to grow as borders reopen and operating performance recovers to pre-pandemic levels.
 
The recovery continues to be largely driven by domestic demand, with international arrivals accelerating in markets within the Pacific and Southeast Asia, which have loosened entry and quarantine restrictions and are now open to all arrivals.​ CBRE forecasts tourism arrivals within the region to reach pre-pandemic levels by 2024, with hotels performance to reach 2019 levels in the same period.
 
Furthermore, given the daily pricing structure and flexibility of rate changes in an evolving economic climate, hotels provide an inflationary hedge. CBRE is therefore forecasting increased investor appetite for operational real estate, such as hotels, as a strategy to enhance and/or maintain portfolio returns.
 
Key highlights from this report include:

• International arrivals continue to grow in Asia Pacific as border restrictions ease.​
• Domestic travel continues to drive tourism particularly in North Asia and the Pacific
• Asia Pacific hotel transaction volume rose to US$10.1 billion as of August 2022 y-t-d, an increase of 17% y-o-y. ​
• Cross-border capital flows into Asia Pacific for hotel assets have experienced minimal disruption, with net inflows of US$932 million since the beginning of 2021 driven predominantly by institutional investors.​
• Average Daily Rate (ADR), Occupancy and Revenue per Available Room (RevPAR) is trending upwards in all Asia Pacific markets, with a regional recovery expected by 2024.​
• With the supply pipeline remaining limited in most Asia Pacific markets, the risk of new competition saturating the market will be low, exerting weaker downward pressure on room rates and revenue.​