Asia hotel market is witnessing a robust revival, with expectations to return to pre-pandemic levels in 2024. Based on “Asia Hotel Brand Blueprint 2023” released by Outbox and Vero, CBRE exposes positive trends in tourism arrivals and hotel performance, driven by domestic travel demand.
1/ Travel Resurgence Factors
Asia leads in travel resurgence, propelled by factors such as a rising middle class, demographic strength, and surging travel demand. The region has outpaced others in international and domestic travel growth, reflecting its strong position in the global tourism landscape.
2/ Hotel Industry Dynamics
Despite challenges, hotel investments in Asia Pacific are dynamic, with a focus on upscale and upper-upscale developments. Asia-based hotel groups like Minor Hotels Group and Dusit Thani are strategically expanding, capitalizing on regional visibility and market presence.
3/ Construction Pipeline and Top Players
The hotel construction pipeline remains strong, particularly in India, Vietnam, Thailand, Indonesia, and Japan. The top five franchise companies, including Hilton, lead in projects and rooms under construction, indicating sustained industry growth.
4/ Asia’s Hospitality Landscape
While international chains like Hilton, Marriot, Holiday Inn lead the upper-upscale tier, Asian hospitality giants Lotte and Aston are making waves in the upscale hotel segment. This shift highlights the growing strength and influence of Asian brands, shaping the regional market and adding diversity to the spectrum of upscale experiences available to travelers.
Despite this, global hotel brands, notably Hilton, maintain an advantage in brand familiarity over local counterparts. This preference suggests a strong inclination among travelers for the reliability and consistency associated with globally recognized names.
5/ Future Outlook
As Asia’s hotel market evolves, differentiation and innovation will be crucial for success in this competitive landscape. The region’s dynamic growth and strategic investments position Asia as a key player in the global hospitality industry, presenting opportunities and challenges.
For deeper insights, immerse yourself in our latest report, “Asia Hotel Brand Blueprint 2023.” This comprehensive guide goes hand in hand with our model Asia Hotel Brand Survey providing a holistic view of the evolving hospitality landscape. Beyond data, it serves as lens into the soul of the market, capturing the heartbeat of trends and enabling actionable insights.