Business

APAC Hotels See 10.7% Growth in International Visitors

The hotel industry in Asia Pacific (APAC) is facing a mix of challenges and opportunities in the present day’s changing macroeconomic environment creating an unpredictable situation that requires hotel operators to stay flexible with their business plans, and quickly adapt to different market conditions.

Looking ahead to 2026, the region expects continued uncertainty. Hotel operators must monitor several key factors, such as political tensions, slowing economic growth, and increased competition from new hotel openings across the region, according to JLL’s APAC Hotel Operators’ Sentiment Survey 2025/2026.

The region is expected to demonstrate overall positive momentum through the remainder of 2025, though regional variations present a mixed outlook. This sets a positive tone overall for 2026 anticipated performance.

Citing UN Tourism data, the third edition of JLL’s survey, revealed that despite these headwinds, tourism in Asia Pacific shows sustained growth, with international visitors increasing by 10.7% in the first half of 2025.

This positive trend has helped hotels in the region achieve marginal but steady improvements in Revenue Per Available Room (RevPAR). Hotels have managed this by raising their Average Daily Rates (ADR) to offset slightly lower occupancy levels compared to last year’s strong performance.

In this complex and fast-changing business environment, the APAC Hotel Operators’ Sentiment Survey explored how hotel leaders across the region were managing current challenges while taking advantage of new opportunities in the market.

Key Insights

Gross Operating Profit of APAC hotels are expected to grow by 2%-6% y-o-y in 2026 as the sentiment in performance is generally more positive for 2026, with improvement expected to continue being driven by both occupancy and Average Daily Rate (ADR).

Hotels are anticipating a better F&B performance in 2026, especially those under a lifestyle brand.

Talent in 1 in 2 hotels continues to leave for a better salary, whether it is within the industry or outside, remains the key reason for leaving, but salary increase ranks fifth in measures implemented to retain talent.

Product Optimisation Leads CAPEX Efforts

Investing in operating systems, MEP and keeping up brand standards are top three key CAPEX priorities for 2026 and coming to sustainability, 30% of the hotels in APAC are rated, driven by brand standards.

Progress continues in incorporating sustainability in hotels, with brand standards continuing to support hotels in investing time and money on sustainability, but there remain a lack of funding and in visibility on the return on investment.

Global Business Magazine

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