Hotel operators across Asia Pacific expect profitability to remain steady and edge higher in 2026, even as global economic and geopolitical uncertainty continues to cast a shadow over the sector, according to JLL's latest Asia Pacific Hotel Operators' Sentiment Survey.
New data from global real estate consultancy JLL reveals a 23% year-on-year (YoY) increase in commercial real estate investment across Asia Pacific in 2024, totaling $131.3 billion and surpassing 2022 levels. Investment volumes in Q4 alone grew 10% YoY to $34.9 billion, marking the fifth consecutive quarter of YoY growth for the region.
Hotel owners and operators are adjusting their operational and branding strategies in response to increased labor and utility costs, limited new supply, and the extended peak of the interest rate cycle.
According to global property consultant Knight Frank, the first quarter of 2024 witnessed an average annual growth rate of 4.1% across the 44 markets covered by the Knight Frank Prime Global Cities Index, marking the strongest rate of growth since Q3 2022