The global hotel sector is undergoing a period where brands are being consolidated. Leading operators continue to expand their footprint by implementing new strategies and launching new products.
Asia Pacific, with its relatively low hotel brand penetration compared to Europe and the U.S., has emerged as a key market for growth.
CBRE Research estimates that 74% of Asia Pacific hotel supply between now and 2030 is aligned with one of the top 8 listed hotel companies – a significant increase over the currently operational market share of 18%.
A key strategy to expand in the region is to offer a wide range of brands. The number of brands that the top eight global operators offer in Asia Pacific has more than doubled between 2014 and 2024.
This report explores how hotel owners and operators are adapting to the ever-changing dynamics of the market and maximizing their profits.
The Asia Pacific region has a low hotel brand penetration compared to Europe or the U.S., making it a crucial growth market for international hotel operators. In order to maximize returns and adapt to market dynamics, owners and investors will need to develop effective brand strategies. Ananth Ramchandran, Head of Advisory & Strategic Transactions, Hotels & Hospitality, Asia, for CBRE
The Key Takeaways
- CBRE estimates that between now and 2020, the eight largest global hotel operators are expected to control 74% combined of all new Asia Pacific hotels due to open. This represents a substantial increase from the 18% share currently held by the operational market.
- The major global hotel operators are expanding their footprint in Asia Pacific through strategic brand introductions and acquisitions. They also partner with other companies to convert hotels, to gain market share.
- In Asia Pacific, between 2014 and the year 2024, the top eight hotel operators in the world more than doubled the number of their brands, from 58 up to 130 by 2024. Offering a wide range of brands to cater for different budgets, lifestyles, and travel style, hotel operators capture a broader range of market share and mitigate risk by diversifying demographics and segments.
- According to data from listed hotel companies, their branded portfolios have performed better than regional benchmarks for Revenue per Available Rooms (RevPAR) in Asia Pacific over the last few years. This is due to brand recognition, stronger platforms and a growing network of loyalty programmes.
CBRE Group, Inc.
CBRE Group, Inc.NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE provides a comprehensive suite of services for a diverse clientele, including facility, transaction, and project management, property management, investment, appraisal, valuation, leasing, strategic consulting and property sales. Visit our website: www.cbre.com.
Ada Choi
Head of Research for Asia Pacific
+852 2820 2871
CBRE Hotels
