Asia-Pacific Hotel Market Ended 2024 Strong
Skift Take
STR reported China hotel data for the week ended February 1. China hotel RevPAR was up 27.3% year over year. It was up against a +8% comp in the year-ago week. ADR was up 45.6% year over year, offsetting an occupancy decline of -12.6%. This was the first week of the Chinese New Year shift impact.
STR also gave a 2024 summary for Asia Pacific. They reported on December being a strong end to 2024 across the AP region, with 16 of the 20 largest countries based on hotel room supply reporting year-over-year growth in RevPAR. New Year’s Eve was the top-performing day in terms of actual RevPAR in all but Nepal. They said December is usually the slowest month of the year for most countries, so the strong performance bodes well for 2025. Vietnam was the top in RevPAR growth in December, with growth in both ADR and occupancy. The country held the top spot in growth in 9 of the 12 months of 2024. Japan was in second place and placed in the top five every month in 2024. Thailand was also strong, with Bangkok producing the fourth-highest RevPAR increase among the top markets. India rounded out the top-performing countries, with 15 of 17 submarkets posting double-digit RevPAR growth, led by Mumbai up 20%.
The Macau Tourism Industry Association seemed to be putting some blame on the Macao Government Tourism Office for the lackluster results for Lunar New Year Golden Week. They said the city’s focus on attracting international tourists last year may have inadvertently led to the neglect of traditional markets such as mainland China and Hong Kong. During the 8-day holiday, average daily visits were 163,700. The MGTO had predicted 185,000 visitors per day. The MTIA suggested some visitors may have gone to Hong Kong or other cities for festivities besides Macau.
According to the recent Construction Pipeline Trend Report from Lodging Econometrics, the Asia Pacific, excluding China, hotel construction pipeline at Q4 2024 close stands at 2,085 projects/412,358 rooms. Here are the highlights in table form:
Asia-Pacific Hotel Construction Pipeline (Excluding China, Q4 2024)
| Stage | Projects | Rooms |
|---|---|---|
| Total Pipeline | 2,085 | 412,358 |
| Under Construction | 848 | 196,408 |
| Starting in Next 12 Months | 367 | 67,617 |
| Early Planning | 870 | 148,333 |
Asia-Pacific Hotel Construction Pipeline by Chain Scale (Q4 2024)
| Chain Scale | Projects | Rooms |
|---|---|---|
| Upscale | 517 | 102,909 |
| Upper Midscale | 376 | 77,174 |
| Upper Upscale | 368 | 80,095 |
Top 5 Asia-Pacific Countries by Hotel Construction Pipeline (Q4 2024)
| Country | Projects | Rooms |
|---|---|---|
| India | 693 | 87,512 |
| Vietnam | 251 | 90,245 |
| Indonesia | 174 | 31,193 |
| Thailand | 168 | 43,381 |
| Japan | 163 | 28,762 |
Top 5 Asia-Pacific Cities by Hotel Construction Pipeline (Q4 2024)
| City | Country | Projects | Rooms |
|---|---|---|---|
| Bangkok | Thailand | 68 | 16,641 |
| Jakarta | Indonesia | 45 | 10,199 |
| Phuket | Thailand | 40 | 10,194 |
| Melbourne | Australia | 36 | 6,851 |
| Bangalore | India | 31 | 5,935 |
Asia-Pacific Hotel Openings and Forecasts (2024-2026)
| Year | Hotels Opened | Rooms Opened |
|---|---|---|
| 2024 | 291 | 55,852 |
| Q4 2024 | 72 | 16,234 |
| 2025 Forecast | 359 | 73,505 |
| 2026 Forecast | 337 | 66,213 |
Hilton’s 4Q earnings results included some updates on their Asia Pacific business. Hilton said 2024 was a record year for growth in APAC, with the company opening 274 new hotels there, adding more rooms than any year in the region’s history, surpassing 1,000 hotels ahead of target. RevPAR growth in APAC was driven by continued demand for intra-regional leisure and business travel across the region. Hilton said Japan and Korea led the region in 2024 RevPAR growth, followed closely by South Asia and Southeast Asia. Hilton said 2024 also had a record year of signings in APAC. Hilton is entering 2025 as the largest international hospitality company in Greater China, with more than 800 trading hotels.
Not to be outdone, Marriott International said they signed a record 109 deals across 11 markets in the Asia Pacific market, excluding China. That contributed 21,439 rooms to the region’s development pipeline, ending 2024 with 77,532 rooms in the pipeline. They closed 2024 with 635 open properties across 25 brands in 22 countries and territories in APEC, not including China.
The City of Dreams Sri Lanka casino is expected to open in the third quarter of this year. John Keells Holdings has been working on getting this US$1.2 billion resort developed since 2014. The 687-room Cinnamon Life Hotel, restaurants, and banquet spaces opened in October 2024. The 113-room Nuwa Hotel and the gaming floor are still under construction. While not saying it directly, John Keells was indicating this will be delayed because originally, they were calling for a mid-2025 opening. Melco Resorts & Entertainment will partner with John Keells and will operate the casino.
Centara Hotels and Resorts has invested 1.4 billion baht to revamp Centara Grand Mirage Beach Resort Pattaya in Thailand to capture premium guests and families. Centara aims to expand water-park-themed hotels labeled Mirage to new destinations. The 19-story Centara Mirage Beach Resort Pattaya operates under the Lost World concept. The property features 555 rooms and suites ranging from 42 square meters to 326 square meters, all rooms offering sea views. The resort features the water park, an adventure park, spa, tennis court, restaurants, and a club lounge on a 43-rai plot next to Wong Amat Beach. Centara expects the renovations to enable them to hike room rates by 15%-20%, with an occupancy rate projected to be 90%-100% during holidays and weekends.
Indian Hotels Company Limited announced the launch of Taj Mysore in Karnataka’s cultural capital. The premium property features 141 well-appointed rooms and amenities, including a spa, fully equipped fitness center, swimming pool, and a banquet area spanning over 11,000 square feet. The project is a collaboration between IHCL and DM South India Hospitality Pvt Ltd. With the addition of Taj Mysore, IHCL now has 23 properties in Karnataka, including 10 currently under development.
Radisson Hotel Group announced the opening of Park Inn & Suites by Radisson Bengaluru Yelahanka, its sixth operational hotel in the city.
Kerzner International Holdings Limited announced its expansion into Japan with the signing of SIRO Roppongi in Tokyo. This follows recent brand extensions in Mexico and Saudi Arabia and the successful opening of SIRO One Za’abeel in Dubai. The SIRO Roppongi in Tokyo is expected to open in 2029, located in Minato-ku ward. The hotel will feature 100 guestrooms and modern wellness facilities, including a Fitness Lab and Recovery Lab.
Hon Kwok Land Investment Co. Ltd announced an acquisition of a hotel property in Osaka, Japan, through its joint venture entity, The Bauhinia Hotels Group Japan 5. The acquisition is valued at JPY1,220 million. Bauhinia Hotels Group Japan 5 assumes the rights from Green Estate under an existing sale contract, with the property completion date extended to February 28.