CBRE’s latest report on Asia Pacific Hotels & Hospitality Performance & Outlook reveals a robust growth trajectory for the region’s hotel sector, with investment volumes expected to approach the record high of $16.3b set in 2024. As of August 2025, investments have already reached $12.1b, with Japan, Australia, and Korea leading the charge.
The report identifies several trends shaping the future of tourism and hospitality in Asia Pacific. Tourism is on the rise, influenced by macroeconomic factors and social media trends, which are reshaping travel planning and foreign exchange rates. This growth positions the region as a future global tourism hub.
Investment in co-living spaces is also accelerating, particularly in Korea, Singapore, Australia, and Hong Kong SAR. This trend reflects a demand for flexible living solutions in increasingly tight residential markets.
Despite the positive outlook, the report notes that hotel performance improvements require innovative revenue management strategies. Hoteliers are encouraged to adopt demand-based pricing, hyper-personalisation, and expand loyalty programmes to enhance profitability. However, the sector faces challenges with constrained supply due to rising construction costs, though opportunities exist in conversion and rebranding.
CBRE’s report underscores the dynamic nature of the Asia Pacific hospitality market, highlighting both opportunities and challenges as the region continues to evolve as a key player in global tourism.
