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JLL Hotels & Hospitality Group Executive Vice President, Ross Beardsell, said that the survey was the most comprehensive insight into how hoteliers were viewing the year ahead, and with the level of economic and political uncertainty. – Image Credit JLL
The newly released JLL Hotel Operators’ Sentiment Survey 2024/2025 is forecasting mixed fortunes for the hotel sector across the Asia Pacific in the year ahead.
The annual survey is based on 1075 responses from hoteliers operating in the Asia Pacific region, including 225 from Australia, New Zealand, and the Pacific. The survey covered all sectors of the hotel market, from luxury to budget, and city to resort.
Overall, North, South, and Southeast Asian hoteliers are forecasting strong performance for 2024/2025. In contrast, the Australasia region is more cautious in its optimism.
The Survey’s main conclusions are:
Occupancy – Australasia and Greater China anticipate a brighter year in 2025 than in 2024, yet they remain more cautious than the other subregions. 35% of Australian respondents warned of challenging conditions for the remainder of 2024, but sentiment regarding 2025 occupancies improved, with 68% predicting a better performance and only 12% predicting lower occupancies in 2025.
ADR – In line with sentiment in Occupancy, more respondents from Australasia and Greater China expect a decrease Y-o-Y in ADR in 2024 and 2025 than in other parts of the region.
Sentiment for more positive occupancy and ADR growth is highest at the two extremes of the market, with 79% of hoteliers in the luxe sector, and 82% of budget hoteliers, expressing positive sentiment about occupancy in 2024/25. Upper Upscale, Upscale and Midscale hoteliers are less optimistic about revenue, but Upscale hoteliers were the most bullish in terms of ADR growth.
Total Revenue & Profit – Hotels in Japan, Thailand and India are most optimistic about the prospect of growth in revenue and profit results in 2024 and 2025, with slower growth anticipated in Australia and Southeast Asia. Hoteliers in China are predicting a general declining trend in 2024/25.
F&B – Increased input costs and pressures on company and household budgets have led hoteliers across the region to be more circumspect about prospects for hotel F&B operations in 2024/25. 28% of respondents were pessimistic about growth prospects for F&B revenue, while 48% believed F&B profit would increase.
28% of Australian hoteliers forecast a potential decline in F&B revenues, and 32% believed F&B profit could fall. Chinese hoteliers were even more concerned about F&B revenues, with 69% less activity, whereas South Asia, the Maldives, and Southeast Asia were generally more optimistic.
Human resources costs and retention remain major issues for hoteliers across Asia Pacific. 87% of hotels anticipate higher wage costs and identify that staff loss is primarily related to personnel being poached from within and outside the industry because of salaries being offered.
The largest Capex items for 2024/25 are for technology and mechanical, electrical, and plant items,