• Tourism renaissance in 2024.

• Evolving hotel landscape.

• RevPAR growth and varied investment environment.

In 2024, major Asian cities experienced significant tourism growth. Beijing, Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Singapore, Shanghai, Sydney, and Tokyo all reported significant increases in international visitors. Key drivers included relaxed visa policies, improved flight connectivity, and the return of major events. However, recovery paces varied, with some cities already exceeding pre-pandemic levels and others still catching up. In particular, Tokyo sets new records for international arrivals, surpassing 2019 levels by 16%. Hotel performance showed positive trends across these markets.

Overall, on the supply-side, the region shows a mix of steady growth, delayed project completions, and a trend towards upscale and lifestyle-oriented properties. Whilst Beijing’s, Jakarta’s and Sydney’s new supply grew modestly in Q4 2024, Bangkok and Kuala Lumpur anticipate a significant number of new openings in 2025 due to delayed projects. Singapore’s new hotel supply shifted towards lifestyle brands and rebranded hotels, and Tokyo saw the entry of its first upscale lifestyle hotel.

In 2024, most cities in Asia Pacific experienced positive RevPAR growth, driven by increased occupancy rates and rising ADRs. Beijing, Shanghai, Sydney, and Tokyo recorded improved performance metrics, with Tokyo’s luxury segment reaching record highs. Transaction activity varied across the region: Hong Kong and Jakarta witnessed limited deals, with owners generally holding assets, whilst Singapore focused on co-living conversions and leasehold properties, and Bangkok anticipates further investor interest.

Outlook
While the outlook is generally positive, with full recovery anticipated by mid-2025, the industry still faces challenges in demand in the immediate term, driving hotels to innovate and differentiate their offerings. Cities like Beijing, Bangkok, and Singapore are leveraging cultural events and attractions to boost both domestic and foreign tourism. There is a notable shift towards sustainable and high-quality tourism experiences, particularly in Indonesia and Malaysia.