JLL Survey: Asia Pacific Hotels are on the Path to Recovery, With Different Regional Disparities and Challenges :: Hospitality Trends

• Asia Pacific hotels are on the path to recovery, with different regional disparities and challenges, from labor and talent shortages to implementing technology and putting sustainability at the forefront.
• The Hotel Operators’ Sentiment Survey (HOSS) 2024/2025 reveals a bifurcation in recovery and growth prospects in Asia, with a generally positive outlook for 2025.

Key Takeaways from Hotel Operators’ Sentiment Survey 2024/2025

The Asia Pacific hotel industry is gradually regaining ground following the onset of the COVID-19 pandemic. However, recovery rates differ significantly across the region, according to JLL’s Hotel Operators’ Sentiment Survey (HOSS) 2024/2025. While international tourist arrivals in the region remain 15% below pre-pandemic levels as of YTD Sep 2024, there is a marked improvement in domestic routes.

The report divides the region into two primary categories: the ‘Outperforming markets’ (South Asia + Maldives, Southeast Asia, and North Asia), and the ‘Slow-growing markets’ (Australasia and Greater China).

The hotel industry faces several challenges, including a persistent talent scarcity in the Asia Pacific region. The high staff turnover rate, largely due to higher salaries in other industries, has resulted in difficulties in recruitment, especially in guest-facing roles. In 2025, staff costs are expected to rise, reflecting both the anticipated increase in headcount and the current inflationary environment.

Food & Beverage (F&B) results are anticipated to be lower than pre-pandemic times for most hotel respondents, despite the region being considered on par with Europe in terms of dining offerings. However, F&B Revenue and Profit will record higher Y-o-Y across all subregions in 2025.

The Meetings, Incentives, Conferences, and Exhibitions (MICE) sector is set for a robust comeback, driven by a growing demand for creative and engaging experiences. Despite challenges expected to persist in the region for the remainder of 2024 and well into 2025, Asia Pacific hotels are generally more optimistic in the year ahead.

Technology investment is a top priority for the Asia Pacific hotel industry in the coming year. Upgrades and improvements that enhance operational efficiency and reduce consumption and waste are high on the list. Moreover, compliance with sustainability and energy efficiency standards has become a non-negotiable aspect of RFP programs.

Finally, hoteliers in Asia Pacific are now more aware of the implementation of sustainability measures. This is largely due to the recent release of the 12th edition of the USALI, which includes metrics related to energy, water, and waste, as well as the growing scrutiny from owners, investors, and financial institutions on sustainability and green actions.

While the Asia Pacific hotel industry continues to grapple with challenges, the general sentiment for 2025 is positive. The industry’s recovery and growth prospects for the year ahead are largely tied to the broader macroeconomic and geopolitical context and the ability to navigate a range of issues, from labor and talent shortages to sustainability and technology implementation.

Discover more: JLL’s Hotel Operators’ Sentiment Survey (HOSS) 2024/2025.