Average hotel occupancy in Asia Pacific recovered to 51% in October 2020. Most countries’ effective containment of the pandemic will lend support to a regional economic recovery in 2021. This is likely to encourage greater leisure and business-related domestic travel, leading to a slow but gradual recovery in hotel occupancy.
Hotel trading conditions will likely remain subdued in markets reliant upon international travel. Several travel bubbles across the region are being established and may lead to some cross-border tourism.
Cleaning and safety protocols will impact the guest experience in the coming years. Examples include contactless check-in, high-frequency cleaning of surfaces and rooms and social distancing measures in amenities and communal areas.
Hotel investment volumes declined in H1 2020 amid deteriorating liquidity conditions and investors’ difficulties in underwriting future incomes. However, many investors retain a healthy appetite for hotels and are adopting a longer-term view towards investment returns.