CBRE’s latest research shows that with the Asia Pacific hotel market continuing to undergo structural change, hotel owners and operators are fine-tuning operational and branding strategies. Increased labour and utilities costs, limited new supply, and the prolonged peak of the interest rate cycle are among the driving factors.

Major global hotel operators are expanding rapidly across Asia Pacific, with almost half of the new hotels in the development pipeline being developed in conjunction with five hotel groups, including Marriott, Accor, IHG, Hilton, and Wyndham. These operators continue to invest in loyalty programmes and niche segments to capture market share while significantly expanding their technological capabilities.

Key trends:

  • Major global operators continue to expand rapidly across Asia Pacific, with an increased emphasis on lifestyle brands.
  • Operators keep daily rates high as a result of limited supply, elevated demand and rising labour costs.
  • Investment remains robust despite debt-related headwinds, and investors maintain preference for upscale+ assets with rebranding opportunities.
  • Adoption of sustainability and ESG initiatives continues; hotels with strong ESG initiatives are set to outperform.

The latest APAC Hotels & Hospitality Market Update focuses on Singapore – the city’s hotel performance has been robust, driven by a steady flow of international arrivals and a packed calendar of events. Singapore registered the highest hotel occupancy levels in Asia Pacific as of April 2024 y-t-d. Occupancy surpassed 83.8% in March, slightly below the 84.3% observed during the same month of 2019.

Please click below links to download the full reports:

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Katherine Yu
CBRE Hotels