• Tourism continued to grow in Q3 on average.

• New openings mostly located in North Asian markets.

• Trading performance increased as of YTD Sept 2025 on average.

Asia Pacific tourism continued to demonstrate mixed recovery patterns in the third quarter across key markets. International visitation increased significantly from last year in markets like Tokyo, Seoul and Ho Chi Minh City (HCMC). In particular, Chinese destinations have strongly benefitted from the visa-free scheme implemented earlier this year, resulting in a jump of 44% and 37% Y-o-Y in international tourist arrivals in Beijing and Shanghai, respectively. Conversely, political and safety challenges have impacted inbound tourism in Bangkok and Jakarta, both having recorded a decrease in international tourism.

Q3 2025 hotel supply activity shows concentrated upscale to luxury brand expansion in North Asian markets while Southeast Asia maintains limited supply growth. Notable launches in Hong Kong, Shanghai, Seoul and Tokyo, include Kimpton Tsim Sha Tsui Hong Kong, Hotel Indigo Shanghai Dishui Lake, Westin Seoul Parnas, and Fairmont Tokyo. New brands continue to enter the Australian market, as illustrated by the opening of the first 25hours hotel in Sydney. Looking ahead to Q4 2025, supply growth is anticipated to be the strongest in Bangkok and Kuala Lumpur, where more than 2,000 new rooms should be added.

As of YTD September 2025, Tokyo, Seoul, Sydney, Manila, and HCMC recorded strong RevPAR growth with higher occupancy in addition to a stable average daily rate. More specifically, Beijing’s luxury hotels remained resilient amid broader market weakness, while Shanghai showed signs of recovery. However, Bangkok and Jakarta faced notable declines in Revenue Per Available Room as a result of a drop in occupancy due to market challenges.

Outlook
Asian hospitality markets demonstrate notable resilience and strategic adaptation across diverse economic conditions, with most cities positioning for sustained growth through 2025-2026. Markets are proactively transforming their approaches. For example, Beijing capitalizes on upcoming international conferences and holiday-driven demand to maintain revenue performance despite corporate budget pressures. Bangkok’s pivot toward market diversification beyond Chinese tourists reflects strategic repositioning for long-term stability. Singapore and Sydney leverage strong event pipelines and tourism roadmaps for sustained demand growth, while transaction activity intensifies across both markets.