• Asia Pacific tourism growth diverges as gateway cities post double-digit gains while some hubs navigate persistent headwinds

• Hotel openings in Q2 remain limited across markets, yet luxury and upscale segments drive selective expansion

• Premium hotel performance outpaces broader market as high-spending traveller demand drives ADR growth

Asia Pacific’s hotel sector continued to demonstrate resilient but uneven growth in Q2 2026. Strong momentum was evident in markets like Seoul, Shanghai, and Vietnam, where robust double-digit visitor growth reflected expanding tourism bases and strategic connectivity initiatives. Beijing and Hong Kong benefited substantially from Mainland Chinese demand, while Singapore’s premium positioning attracted higher-value travellers from key markets. Hotel supply across Asia Pacific remained largely constrained in Q2 2026, reflecting strategic market positioning. No new openings were recorded in Hong Kong, Jakarta, Manila, and Sydney, with supply growth deferred to the second half amid elevated construction costs and financing pressures. New hotel openings were concentrated in the upscale and luxury segments, particularly in Beijing, Shanghai, and Kuala Lumpur.

Seoul’s supply additions remained structurally limited, driving accelerated adoption of rebranding and conversion strategies as faster market-entry alternatives. Looking ahead, pipeline activity is expected to intensify in H2 2026, though longer-term growth remains tempered by site scarcity and feasibility constraints across multiple gateway cities. Hotel performance across Asia Pacific remained broadly positive in Q2 2026. H

igh-end segments particularly demonstrated strength: luxury hotels in Beijing, Shanghai, and Hong Kong captured robust ADR growth and pricing power, supported by returning high-spending travellers and strong experiential demand. HCMC posted double-digit RevPAR gains despite seasonal normalisation. Investment activity intensified selectively, with Singapore preparing more than SGD 1 billion in deals for Q3, and Seoul transaction activity extending beyond traditional districts

Outlook
The outlook for Asia Pacific’s hotel sector remains constructive through H2 2026, underpinned by strategic policy initiatives and sustained demand fundamentals across key markets. Government-led tourism campaigns are gaining traction: Hong Kong’s Five-Year Tourism Development Plan targets 53.8 million visitors in 2026, while Malaysia’s ‘Visit Malaysia 2026’ and enhanced MICE calendars position the market for high-yield growth. Supply constraints in HCMC, Seoul, and Sydney are expected to sustain pricing power, with strong ADR momentum anticipated through peak travel periods. Overall, favourable demand-supply dynamics and investor confidence signal continued sector strength through H2 2026.