2023 Asia Pacific Hotels & Hospitality Outlook

Despite current economic headwinds and constraints on airline seat availability, hotel performance in Asia Pacific has continued to improve in 2023.

The recovery continues to be largely driven by domestic demand, although the return of mainland Chinese tourists at the beginning of 2023 has started to trickle into neighbouring markets with greater velocity in the past quarter.

The strong performance of hotels over the past 12 months relative to other asset classes, combined with the cyclical recovery and the nature of inflation hedging, is ensuring that investor appetite for operational real estate, such as hotels, continues to strengthen. Assets in tier I countries (Australia, Japan and Singapore) alongside resort markets are performing especially well.