JLL’s latest Hotel Operators’ Sentiment Survey for 2024/2025 paints a nuanced picture of the Asia Pacific hotel industry, highlighting both opportunities and challenges in the coming year. The survey, conducted across 1,075 operators in the region, including 225 from Australia, New Zealand, and the Pacific, reveals a mixed outlook, with varying degrees of optimism across different subregions.
While hoteliers in North, South, and Southeast Asia are generally optimistic about the future, their counterparts in Australasia express a more cautious outlook. Key findings of the survey include:
Occupancy Rates:
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Australasia and Greater China:
Hoteliers in these regions anticipate better occupancy rates in 2025 compared to 2024, although they remain less confident than other subregions. Notably, 35% of Australian respondents anticipate challenging conditions for the rest of 2024, but sentiment improves for 2025, with 68% expecting higher occupancy rates and only 12% predicting a decline.Average Daily Rate (ADR):
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Australasia and Greater China:
Aligning with the occupancy outlook, more respondents in these regions expect a year-over-year decrease in ADR for both 2024 and 2025.*
Market Spectrum:
Positive sentiment about occupancy and ADR growth is strongest at the extremes of the market spectrum. 79% of luxury hotel operators and 82% of budget hotel operators express optimism about occupancy for 2024/2025.Total Revenue & Profit:
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Optimistic Regions:
Hotels in Japan, Thailand, and India are most optimistic about revenue and profit growth for 2024 and 2025.*
Slower Growth:
Slower growth is expected in Australia and parts of Southeast Asia.*
China:
Hoteliers in China anticipate a general decline in revenue and profit during 2024/2025.Food & Beverage (F&B):
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Rising Costs:
Rising costs and budget pressures are making hoteliers cautious about F&B operations. 28% of respondents have a pessimistic outlook on F&B revenue growth, while 48% believe F&B profits will rise.*
Australia:
28% of Australian hoteliers foresee a drop in F&B revenues, and 32% predict a decline in F&B profits.*
China:
Chinese hoteliers are even more concerned, with 69% forecasting reduced F&B activity.*
Optimistic Regions:
Conversely, there is a more optimistic outlook in South Asia, the Maldives, and Southeast Asia.Human Resources:
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Labor Costs and Retention:
Labor costs and retention remain critical issues, with 87% of hotels expecting wage increases. Staff attrition is largely attributed to competitors offering higher salaries.Capital Expenditure (Capex):
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Technology and Sustainability:
The biggest Capex focuses for 2024/2025 are on technology, mechanical, electrical, and plant upgrades, with sustainability ranking third.*
Sustainability Challenges:
While hoteliers are motivated to implement sustainability measures to meet brand standards, funding shortages pose a significant challenge to achieving environmental goals.Key Insights:
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Slowing Hotel Openings:
The pace of new hotel openings has slowed in Australia, except for Brisbane, which is set to welcome new premium hotel rooms at the Queen’s Wharf precinct.*
International Travel:
The expected resurgence in hotel demand is proving elusive, particularly with the projected net deficit in international travel to Australia. While outbound holiday travel is surging, inbound visitors remain far from 2019 levels.*
Inflationary Pressures:
Inflationary pressure has begun to ease globally, but it remains high in Australia.*
Chinese Economic Impact:
The pessimistic responses from Chinese hoteliers are likely to impact the tourism and hospitality industry across the entire region, as the economic situation in China is significantly reducing travel both domestically and internationally.*
