Hotel operators across the Asia Pacific are forecasting a moderate increase in profitability in 2026, with gross operating profits expected to rise between 2% and 6% year-on-year, according to JLL’s APAC Hotel Operators’ Sentiment Survey 2025/2026.
The survey shows cautious optimism as hotels balance cost control, workforce challenges, and sustainability pressures against a backdrop of geopolitical and economic instability.
“There is a clear consensus from hotel operators in Asia Pacific that the unpredictable global geopolitical and economic situation requires a higher degree of flexibility with their business plans,” said Xander Nijnens, Senior Managing Director at JLL’s Hotels & Hospitality Group.
The report identifies geopolitical uncertainty (17%) as the top concern among respondents, followed by economic slowdown and competition (both 15%), and inflationary pressure (11%).
International visitor arrivals grew 10.7% in the first half of 2025, supporting Revenue Per Available Room (RevPAR) growth, largely through higher Average Daily Rates.
Vietnam is projected to lead regional profit gains with a 6% increase in GOP, followed by India and Japan, each expecting 4–6% growth. In contrast, Greater China faces declining profits amid margin pressure and slower recovery.
Half of hotels surveyed reported staff departures for higher pay, yet salary increases ranked only fifth among retention efforts. Operators are prioritising efficiency, investing in operating systems, mechanical and electrical upgrades, and brand compliance.
Around 30% of APAC hotels have achieved formal sustainability ratings, though limited funding and uncertain returns remain obstacles.
“Owners must work much harder to unlock value in their assets and to drive performance uplift,” Nijnens said. “Embracing innovation, adopting new technologies, and leaning into experiential and lifestyle trends are avenues to creating this uplift.”