Asia Pacific Hotels and Hospitality Performance & Outlook 2026

Asia Pacific’s hotel and hospitality sector continued to recover in 2026, supported by resilient tourism demand despite disruptions from the Middle East conflict and higher air travel costs. International arrivals increased across most markets, while ADRs reached record highs, although occupancy generally remained below pre-pandemic levels. Rising construction costs and slower occupancy recovery are constraining new hotel supply, with future development increasingly concentrated in upscale and higher-end segments. Meanwhile, hotel investment reached US$8.0 billion in H1 2026, up 21% year-on-year, led by Japan, mainland China and Korea, although elevated borrowing costs may temper investment activity in H2 2026.

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