• Continued rebound in international visitation across Asia Pacific.

• Uneven hotel supply growth in Q3 2024, with a consistent focus on upscale and above segments.

• Positive trends in both performance metrics and investment activity.

As of YTD Q3 2024, major cities experienced a strong recovery in tourism, with many approaching or surpassing pre-pandemic visitor levels, driven by several factors, including the return of Chinese tourists, implementation of visa-free policies, and the hosting of major events and conferences. Cities like Hong Kong, Bangkok, and Singapore saw significant Y-o-Y growth in international arrivals, while hotel performance metrics improved across the region.

Hotel supply grew at different rates. While some markets like Bangkok and Shanghai experienced significant expansions, others like Seoul and Sydney saw limited or no new openings. Notably, there has been a focus on upscale and luxury segments across most markets.

The sector remains split in terms of recovery across key destinations. While investment activity is surging in Thailand, particularly in Bangkok, Hong Kong and Singapore report significant transaction volumes as of YTD September 2024. Jakarta shows promise despite few deals, and Kuala Lumpur is experiencing subdued investment despite RevPAR growth. Shanghai’s premium hotel market is slowly regaining ground, Seoul’s high-end segment is setting new records, and Sydney has exceeded pre-pandemic RevPAR levels with significant property sales.

Outlook
The industry across major destinations is experiencing a robust rebound and expansion. From Beijing’s steady performance to Thailand’s strategic visa policies, the sector is showing resilience. Cities like Hong Kong, Jakarta, and Singapore are leveraging events and infrastructure improvements to accelerate their recovery. Kuala Lumpur is diversifying its appeal, while Shanghai’s significant investments are attracting affluent clientele. Seoul’s market is gaining traction with international investors, and Sydney maintains its allure despite economic headwinds. These diverse approaches are collectively driving the region’s hospitality sector towards a full recovery in the near term.