Hotel operators across Asia Pacific expect profitability to remain steady and edge higher in 2026, even as global economic and geopolitical uncertainty continues to cast a shadow over the sector, according to JLL’s latest Asia Pacific Hotel Operators’ Sentiment Survey.
The report reflects a cautiously optimistic industry mood. On average, hotel executives anticipate gross operating profits will rise between 2% and 6% year over year in 2026, underscoring the sector’s continued resilience after several years of post-pandemic recovery.
“Operators across Asia Pacific are adapting to an unpredictable global landscape with more flexible business plans and disciplined cost management,” said Xander Nijnens, Senior Managing Director and Head of Advisory and Asset Management for JLL’s Hotels & Hospitality Group in Asia Pacific. “Despite the volatility, hotel performance remains robust, and we expect profitability to continue expanding through 2026.”
While optimism prevails, concerns about external risks are rising. Seventeen percent of survey respondents cited geopolitical instability as the greatest threat to hotel performance next year–outpacing fears of economic slowdown and rising competition, both at 15%, as well as inflationary pressures at 11%.
Tourism trends continue to bolster the region’s outlook. According to UN Tourism, international arrivals in Asia Pacific increased by 10.7% in the first half of 2025, supporting steady gains in Revenue Per Available Room (RevPAR). Operators have largely sustained profitability by lifting Average Daily Rates (ADR) to offset slightly lower occupancy levels compared with a strong base last year.
Among individual markets, Vietnam stands out as the regional leader, with gross operating profit expected to grow 6% in 2026. India follows closely, with total revenue forecast to rise 6% and GOP up 4%. Japan and South Korea also rank among the top performers, each projecting 4% profitability growth, supported by robust travel demand and limited new supply. In contrast, Greater China remains a soft spot, with operators anticipating profit contraction that outpaces revenue declines, reflecting cost pressures, margin compression, and continued weakness in hotel demand.
Across the region, operators are sharpening their focus on operational excellence, talent management, and sustainability. Many report solid momentum in food and beverage operations, particularly within lifestyle-oriented hotels that have benefited from growing consumer appetite for experiential dining. Labor challenges persist, however, with half of surveyed hotels still facing high staff turnover driven largely by wage competition. Yet, pay raises remain a relatively low priority among retention initiatives, suggesting a gap between management strategies and workforce expectations.
Capital expenditure plans for 2026 point to a focus on improving efficiency and asset preservation. Investments are being directed toward upgraded operating systems, mechanical and electrical improvements, and brand standards compliance. Sustainability also remains on the agenda, with 30% of hotels in the region now achieving formal sustainability ratings. However, operators cite limited funding, unclear returns on green technologies, and inconsistent performance metrics as barriers to broader adoption.
“The latest findings underscore an industry that has learned to navigate volatility while keeping its focus on profitability and innovation,” Nijnens said. “With growth decelerating in some markets, owners will need to work harder to unlock value in their assets–by embracing technology, improving operational efficiency, and leaning into the experience-driven trends shaping the next phase of hospitality in Asia Pacific.”
