Market Trends of Asia-Pacific Luxury Hotel Industry
This section covers the major market trends shaping the APAC Luxury Hotel Market according to our research experts:
Rising Population Preferring Leisure Vacations Contributes to the Market Growth
The increased interdependence of economies, populations, and cultures around the world is known as globalization, and it is expected to have a positive impact on the APAC luxury hotel industry. As a result, people are moving from one place to another at a faster rate, making the world smaller. However, with increasing income and job opportunities, people have become more confident in their spending habits and a significant portion of society is now able to afford luxury spending, at least occasionally if not frequently. The reasons for the movement could range from personal vacation to one enforced by professional obligations. The rising number of business trips taken by working professionals benefits the APAC market cap as well. Since these travels are business-related and sponsored by businesses, the professionals are typically housed in upscale hotels rather than budget ones, which boosts the APAC market's revenue.
Increase in the Number of Hotel Projects is Driving the Market
Asia Pacific has luxury hotel projects for the construction pipelines in 2023, China, with 3,693 projects/701,974 rooms; India, with 339 projects/42,548 rooms; and Indonesia with 284 projects/45,359 rooms. APAC has 10 Luxury hotels pipelined to be opened in 2023, they are Andaz Pattaya Jomtien Beach, Thailand; Artyzen New Bund 31 Shanghai, China; Artyzen, Singapore; Bvlgari Hotel Tokyo, Japan; Four Seasons Hotel Suzhou, China; Cap Karoso, Indonesia, Innit Lombok, Indonesia; Six Senses Kanuhura Resort, Maldives; Janu, Tokyo; Regent, Hong Kong; Westin Rishikesh Resort & Spa: Rishikesh, India.
Pan Pacific Hotels Group announced it will double its serviced suites portfolio in 2023 with openings in key gateway cities such as Bangkok, Hanoi, Jakarta, Kuala Lumpur, and Nairobi. Its developments are under the parent company UOL Group Limited. The Group's latest wave of expansion will increase its global development portfolio by 50%, adding more than 4,000 keys by 2023.
Mandarin Oriental Hotel Group announced it would manage a new resort with branded residences in Phu Yen province, one of Vietnam's coastal regions. The project aims to open in 2026 and will be the group's third property in Vietnam.
Fairmont Hotels & Resorts part of the world-leading hospitality group Accor, and Asset World Corp Public Company Limited (AWC), Thailand's leading integrated lifestyle real estate group, announced the signing of the first Fairmont hotel in Thailand. Fairmont Bangkok Sukhumvit is set to open in 2024 as the first project signed under AWC's multi-property framework agreement with Accor, elevating Bangkok as a global hub for luxury leisure, business, and group travel. Under this partnership, AWC and Accor will open more than 1,000 keys across multiple Accor-branded hotels in key tourist destinations throughout the country, providing unique offerings and experiences for guests, and strengthening Thailand as a sustainable tourism destination.
