Confidence in Asia Pacific’s hotels and hospitality market continues to grow
Confidence in Asia Pacific’s hotels and hospitality market continues to grow as borders reopen and operating performance recovers to pre-pandemic levels, according to CBRE.
The recovery continues to be largely driven by domestic demand, with international arrivals accelerating in markets within the Pacific and Southeast Asia, which have loosened entry and quarantine restrictions and are now open to all arrivals. CBRE forecasts tourism arrivals within the region to reach pre-pandemic levels by 2024, with hotels performance to reach 2019 levels in the same period.
Furthermore, given the daily pricing structure and flexibility of rate changes in an evolving economic climate, hotels provide an inflationary hedge. CBRE is therefore forecasting increased investor appetite for operational real estate, such as hotels, as a strategy to enhance and/or maintain portfolio returns.
Key highlights from this report include:
International arrivals continue to gro