Vietnam and Korea lead APAC hotel performance in H1 2026
The results signal resilient tourism demand and hotel pricing power, which may support room rates and investment sentiment despite constrained air capacity and uneven source-market recovery.
Vietnam led APAC hotel performance in H1 2026 as arrivals rose 15 per cent, while Korea posted the region’s fastest arrivals growth at 19 per cent.
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Hotel performance remained resilient despite flight capacity constraints.
Hotels across most Asia Pacific markets recorded year-on-year growth in revenue per available room (RevPAR) in the first half of 2026, despite constraints on occupancy from lower flight capacity and higher fuel costs, according to CBRE.
The property consultancy said hotels have largely offset softer occupancy growth by adjusting pricing strategies. Its January forecast had anticipated slower tourism growth in 2026 as arrivals approached pre-pandemic levels in 2025, while a full recovery in mainland Chinese outbound travel remained dependent on domestic economic conditions.
Vietnam recorded the strongest hotel performance in the region in H1 2026, CBRE said. Tourist arrivals rose 15 per cent year-on-year, supported by relaxed visa policies and expanded air connectivity, driving gains in both average daily rate (ADR) and occupancy.
Korea also recorded strong tourism growth, with arrivals increasing 19 per cent year-on-year, the highest growth in the region. CBRE attributed this to the continued popularity of the Korean Wave and a weaker won, which has made hotels more affordable for international visitors. ADR rose 11.6 per cent year-on-year.
In Hong Kong SAR, ADR increased 9.5 per cent year-on-year, supported by a series of major MICE, cultural and sporting events, alongside limited new hotel supply.
Australia's ADR continued to rise despite already reaching a historical high, while occupancy remained stable, according to CBRE.
Singapore also recorded resilient hotel performance, with its MICE events economy supporting growth in both ADR and occupancy.
Japan saw tourist arrivals edge down 1 per cent year-on-year, mainly due to fewer visitors from mainland China. CBRE said this was largely offset by increased arrivals from Taiwan and Korea, as well as stronger long-haul demand from the US and Europe. Higher spending power among these visitors helped support ADR growth.
Thailand's hotel performance was broadly flat year-on-year in the first half, as a steady recovery in mainland Chinese visitors offset weaker arrivals from long-haul markets, CBRE said.
Overall, CBRE expects hotel performance across the region to remain influenced by the balance between tourism demand, air capacity, pricing power and the pace of recovery in key source markets.