Capturing tailwinds in a fast-evolving environment: The hotel industry in Asia Pacific (APAC) is facing a mix of challenges and opportunities in today's changing macroeconomic environment.

This creates an unpredictable situation that requires hotel operators to stay flexible with their business plans, and quickly adapt to different market conditions.

Looking ahead to 2026, the region expects continued uncertainty. Hotel operators must monitor several key factors, such as political tensions, slowing economic growth, and increased competition from new hotel openings across the region.

Despite these headwinds, tourism in Asia Pacific shows sustained growth, with international visitors increasing by 10.7% in the first half of 2025 according to UN Tourism. This positive trend has helped hotels in the region achieve marginal but steady improvements in Revenue Per Available Room (RevPAR). Hotels have managed this by raising their Average Daily Rates (ADR) to offset slightly lower occupancy levels compared to last year's strong performance.

In this complex and fast-changing business environment, the APAC Hotel Operators' Sentiment Survey explores how hotel leaders across the region are managing current challenges while taking advantage of new opportunities in the market.
 
Key insights:

• Gross Operating Profit to grow by 2-6% Y-o-Y in 2026
  Sentiment in performance is generally more positive for 2026, with improvement expected to continue being driven by both occupancy and Average Daily Rate (ADR).

• About 3 in 5 hotels optimistic on F&B in 2026 with stable margins
  Hotels are anticipating a better F&B performance in 2026, especially those under a lifestyle brand.

• Talent in 1 in 2 hotels continues to leave for a better salary
  Getting a better salary, whether it is within the industry or outside, remains the key reason for leaving, but salary increase ranks fifth in measures implemented to retain talent.

• Product optimization leads CAPEX efforts
  Investing in operating systems, MEP and keeping up brand standards are top 3 key CAPEX priorities for 2026.

• Sustainability: 30% of the hotels in APAC are rated, driven by brand standards
  Progress continues in incorporating sustainability in hotels, with brand standards continuing to support hotels in investing time and money on sustainability, but there remain a lack of funding and in visibility on the return on investment.

Download the report to examine 2026 performance sentiment for trading, revenue, operating profit, and F&B, and see how Asia Pacific hotels are addressing industry current challenges.

Authors:

• Marina Bracciani, Vice President APAC Hotels Research
• Xander Nijnens, Head of APAC Advisory & Asset Management

About the Survey
Launched in 2023, JLL’s Hotel Operators’ Sentiment Survey (HOSS) analyses sentiment from hotel General Managers in the year ahead to get a view ‘on the ground’ from an operations perspective. In this complex and fast-changing business environment, collecting feedback from hotel operators strengthens JLL’s understanding of the market, complementing our understanding of the dynamics from an investor perspective.

The 3rd edition of the APAC HOSS report is based on over 830 responses from hotels in Asia Pacific, across 22 countries. The survey was conducted in Q3 2025.