The Asia-Pacific (APAC) hotel sector is set for steady and sustainable growth in 2026, building on the post-pandemic recovery and underpinned by robust structural fundamentals.

Travel demand across the region remains strong, driven by rising disposable incomes, expanding air connectivity, and stable economic conditions, creating an encouraging environment for both operators and investors.

High-growth markets such as India, Vietnam, and key Japanese cities are expected to continue to lead the region, supported by resilient domestic demand and strong international arrivals.

Mature gateway cities—including Singapore and Sydney—are poised to deliver stable, high-quality returns, underpinned by consistently strong occupancy and the defensive characteristics of established business hubs. Resort markets remain selective: the Maldives and Langkawi are benefiting from rate-led growth, while Phuket and Bali face softer conditions.

RevPAR growth is expected to strike a healthy balance between rate and occupancy gains as pricing power stabilizes and incremental demand continues to support performance. Leisure travel remains a key driver, while business travel and MICE activity are set to strengthen, particularly in major urban and convention-led destinations.

The return of large-scale events and corporate travel will further enhance revenue stability and smooth seasonal fluctuations.

Markets with disciplined supply pipelines, such as Japan and select Indian cities, are well positioned to maintain strong margins, while destinations with heavier new supply may see moderate competitive pressures. This underscores the value of strategically located, well-branded, and operationally flexible assets.

Investment activity is expected to remain positive, with both regional and cross-border capital targeting markets with clear demand visibility, favourable demographics, and long-term tourism growth potential.

Overall, the APAC hotel sector in 2026 offers a compelling investment outlook, combining sustainable growth, disciplined supply management, and strong underlying demand to reinforce the region’s status as one of the world’s most dynamic hospitality markets.

For more information about the Asia-Pacific market or for help making informed investment decisions that align with your goals and risk tolerance, please contact Hok Yean Chee, HVS President – Asia Pacific