APAC hotel occupancy remains below pre-pandemic levels

, APAC But Korea and Vietnam are notable exceptions. Hotel occupancy across most Asia Pacific markets has yet to fully recover to pre-pandemic levels, although performance remains positive as rising average daily rates support growth in revenue per available room, according to CBRE. CBRE said Korea and Vietnam are notable exceptions, with double-digit growth in visitor arrivals lifting occupancy by 7% and 8% year on year, respectively, as of July year to date. India is also recording rising occupancy, with high international airfares encouraging more travellers to opt for domestic trips and supporting hotel demand. In Hong Kong SAR, occupancy remained below pre-pandemic levels but increased 3% year on year as of July year to date. CBRE said the conversion of some upper-midscale hotels into student accommodation has helped ease pressure on hotel occupancy. Japan has seen a slight decline in occupancy following a modest drop in visitor arrivals, although performance varies significantly by market. Osaka has experienced the sharpest decline, partly reflecting the high comparison base created by the 2025 Expo, while nearby Kyoto has also recorded a decrease. Occupancy in Tokyo, Kyushu and Hokkaido has remained broadly flat or edged higher, according to CBRE. Looking ahead, CBRE expects further occupancy gains to be constrained by limited flight capacity amid elevated fuel costs. This is likely to encourage travellers to choose domestic holidays or lower-cost alternative destinations. Despite the uneven occupancy recovery, CBRE said overall hotel performance remains positive. RevPAR is rising across most Asia Pacific markets, primarily driven by stronger average daily rates (ADR), providing support for hotel operating performance even where occupancy has not fully recovered. Join Real Estate Asia community Join Real Estate Asia community ...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign, in print and digital, on this website and in print magazine. We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor. Let us help you drive your business forward with a good partnership!