Asia Pacific Tourist Arrivals Trail 15% Below 2019

STR reported China hotel data for the week ended December 28, 2024. Hotel RevPAR in China was down -3.6% year over year that week, up against a tough +63.6% comp in the prior week. ADR was down -3.5% year over year for the week in 2024 while occupancy was down -0.1%.

CoStar/STR said the average price of a hotel room in Melbourne, Australia in November rose to $234 a night, the highest rate recorded in five years. Prior to the pandemic, rates were averaging $204. Occupancy is at 78.8%, however, and that is still below the pre-Covid high of 86.6%. Luxury hotels have opened in the market in the past two years, helping drive up room rates. That includes the Ritz-Carlton, Lanson Place, Le Meridien, and Melbourne Place. Over in Sydney, occupancy levels have exceeded pre-Covid and rates are still higher than in Melbourne.

The Philippines had a total of 5,949,350 international arrivals in 2024, way short of the Dept. of Tourism's projection of 7.7 million arrivals. The year did end on a positive note, with arrivals of 598,493 in December, the highest monthly visitor count since January 2020. 2024 visitor arrivals were up 9.15% over 2023 even as it missed estimates.

Fiji's 5,000 room shortage issue is expected to soon be addressed with the progress of hotel development projects around the country, according to the Prime Minister. The country has an excess number of airline passenger seats in comparison to hotel beds but upon completion of a few hotel and accommodation projects this year in the west, Coral Coast, Central Division and the North, the accommodation situation should not be a huge issue anymore.

JLL's Hotel Operators Investment Survey 2024/2025 showed 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 general outlook for 2025 is Positive but JLL said recovery rates differ significantly across the region. International tourist arrivals remain -15% below pre-pandemic levels as of YTD September 2024. The Outperforming markets are South Asia + Maldives, Southeast Asia and North Asia. The Slow-Growing markets are Australasia and Greater China. In 2025, staff costs are expected to rise as hotels continue to have high turnover rates due to higher salaries in other industries. F&B results are expected to be lower than pre-pandemic despite the region being on par with Europe in terms of dining offerings. F&B Revenue and Profit are expected to be higher year over year. MICE is set for a robust comeback, according to JLL, driven by a growing demand for creative and engaging experiences.

Marriott International's Autograph Collection Hotels brand announced the official opening of The Park Lane Hong Kong, Autograph Collection in the heart of Causeway Bay. This marks the debut of the Autograph Collection brand in Hong Kong. The new hotel is strategically located at the gates of Victoria Park, adjacent to landmarks, including the World Trade Center and the Hong Kong Convention and Exhibition Centre. The property includes 820 spacious guest rooms and suites, over 1,700 square meters of meeting and event space, including the Harbour & Windsor and The Rooftop Garden at the top of the hotel, a backdrop for romantic weddings, family celebrations or corporate events. The hotel also features three dining venues, from innovative international cuisine to authentic local flavors.

Accor's MGallery Collection announced the opening of three new destinations in Greater China, expanding its portfolio to a total of nine hotels in operation, with over a dozen more hotels under development. The 262-room Fashion Town Hotel Shenzhen – MGallery Collection; 178 room Dangkou Ancient Town Hotel Wuxi – MGallery Collection; and the 160-room Ming Hotel Nanjing – MGallery Collection are now welcoming travelers to the region, following up on the recent opening of Chengdu Expo Waterfall Hotel – MGallery Collection. The hotels include amenities such as restaurants, meeting and event spaces and more for their business and leisure customers.

Accor also announced the first international luxury hotel in Shenzhen's Longhua district in Guangdong province, the Fashion Town Hotel Shenzhen MGallery Collection. The hotel opened on December 28, 2024, described as being designed to promote communication and cooperation in fashion and culture, hosting a variety of art exhibitions and cultural events. The hotel is owned by Shenzhen Longhua Construction Development Co.

Siam Motors Group continues to expand its investment portfolio, most recently with a conversion project entering the hotel business by partnering with the Pan Pacific Hotel Group to renovate the Siam Motors Building into the Siam Pan Pacific. The landmark in the heart of Bangkok is expected to open as a luxury hotel in 2027. The 18-story Siam Motors Building will be transformed into the Siam Pan Pacific. The hotel will offer 220 luxurious rooms ranging from 37 square meters to 163 square meters, each offering city views. There will be a 24-hour fitness and yoga room, a swimming pool, steam rooms and saunas. Exclusive meeting spaces will round out the amenities when the property opens its doors in 2027.

Home Lands will build Sri Lanka's first tourist resort apartments with an investment of $40 million. Home Lands Skyline Ltd announced the acquisition of premier land in Negombo for the ambitious development. The project will feature 244 modern apartments and 40 luxury villas, designed to maximize the lagoon views and natural surroundings. Home Lands said the project will have over 40 amenities, including a seaplane pier, an upscale restaurant and opportunities for engaging lagoon activities. This will be featured as the first tourist resort apartments in Sri Lanka.

Hyatt Hotels Corporation and City Hotel Limited announced the transformation of Hyatt Place Kathmandu into Hyatt Centric Soalteemode Kathmandu, marking the opening of the first Hyatt Centric branded hotel in Nepal.