APAC hotel sector showing positive signs

Print Friendly, PDF & Email

AS the first region beginning to show signs of recovery from COVID-19, the Asia Pacific region is expected to see hotel openings increase in the second half of the year and into 2021.

Global hotel intelligence firm Lodging Econometrics has reported construction has restarted in the region with timelines only slightly delayed.

“Asia Pacific is the first region in the world that has begun to show signs of recovery from COVID-19. The region is slowly easing stay-at-home orders and reopening. Each country has put in place testing procedures and quarantine requirements in hopes of boosting business and international travel to the area.

“LE is expecting to see hotel openings uptick in the second half of 2020 into 2021.”

There are 409 projects with 79,610 rooms scheduled to start construction in the next 12 months, according to LE, and a record high 519 projects and 102,796 rooms in the early planning stage.

Asia Pacific’s total construction pipeline, excluding China, expanded to 1,905 projects and 404,903 rooms, up 6% and 5% respectively, year-over-year. Some 977 projects are under construction across the region, with 222,497 rooms.

During the first quarter of 2020, the Asia Pacific region excluding China saw 83 new hotels open, with a combined 15,263 rooms open.

Outside of China, countries with the largest pipelines in the Asia Pacific are headed by Indonesia, with 355 projects and 57,720 rooms. Next is India with 263 projects and 36,269 rooms, and Japan with 238 projects and 46,667 rooms.

The trio accounts for 45% of the region’s projects outside of China.

Australia follows with 188 projects and 35,216 rooms, and then Vietnam with 156 projects and 62,371 rooms.

By city, Jakarta currently has the heftiest pipeline with 81 projects and 13,994 rooms, followed by Seoul with 68 projects and 13,393 rooms, and Tokyo with 54 and 12,691.

Next are Kuala Lumpur (49 projects and 12,847 rooms) and Bangkok (43 and 11,664).

Four franchise companies in the region account for 40% of all projects and rooms in the pipeline. Marriott International has an all-time high with 289 projects and 62,927 rooms, with its Fairfield Inn tallying 51 projects and 7,570 rooms, and Courtyard at 39 projects and 8,195 rooms.

AccorHotels in second with 229 projects and 47,878 rooms. The French giant’s Ibis brand has 51 projects and 9,895 rooms and Novotel has 45 projects ad 10,617 rooms.

InterContinental Hotels Group (IHG) has 140 projects and 30,193 rooms, with its Holiday Inn at 50 projects with 10,746 rooms and Holiday Inn Express with 26 projects and 5,512 rooms.

The fourth most prominent company in the region, Hilton Worldwide has 96 projects and 21,813 rooms. Its Hilton Hotel & Resorts brand currently has 32 projects and 8,817 rooms.

Related posts

Vicinity portfolio loses half a billion in value

THE pandemic has wiped out another $570 million from the value of Vicinity Centres’ retail…
Read more

Office rents stabilising as workers return to work

THE reopening of commercial centres and an economic recovery late last year helped arrest the rapid…
Read more

Residential vacancies dip despite pandemic

DESPITE a trying year in the market, the national rate dropped by 0.3% when compared to December of…
Read more