Amidst global economic and geopolitical uncertainty, hotel operators across Asia Pacific expect profitability to remain stable, trending upwards at a moderate level in 2026. According to JLL’s (NYSE: JLL) APAC Hotel Operators’ Sentiment Survey 2025/2026, respondents have revealed a cautiously optimistic outlook, aggregately predicting gross operating profits to increase between two and six percent year-on-year in 2026.
As the broader hotel industry in Asia Pacific continues its growth trajectory post-pandemic, JLL’s annual survey provides critical insights into hotel operators’ expectations for 2026, highlighting strategic priorities around profitability growth, talent retention, and sustainable operations.
According to respondents, the hotel industry in Asia Pacific continues to face a mix of challenges and opportunities in today’s changing macroeconomic environment. Seventeen percent of respondents cited geopolitical uncertainty as the biggest risk to hotel operating performance in 2026, ahead of economic slowdown (15%), increase in competition (15%) and inflationary pressures (11%).
There is a clear consensus from hotel operators in Asia Pacific that the unpredictable global geopolitical and economic situation requires a higher degree of flexibility with their business plans to be able to quickly adapt to different market conditions. With the backdrop of volatility, the hotel sector in Asia Pacific continues to perform robustly and we expect continued growth in operational profits in 2026. Xander Nijnens, Senior Managing Director, Head of Advisory and Asset Management, JLL’s Hotels & Hospitality Group, Asia Pacific.
Tourism in Asia Pacific continues to show sustained growth, with international visitors increasing by 10.7% in the first half of 2025, according to UN Tourism. This backdrop has resulted in hotels in the region achieving steady improvements in Revenue Per Available Room (RevPAR) on average, specifically as operators have managed this by raising their Average Daily Rates (ADR) to offset slightly lower occupancy levels compared to a strong base last year.
According to JLL analysis, Vietnam has been identified by operators as the regional standout in terms of profitability growth in 2026, relative to 2025, reinforced by a strong 6% growth forecast in Gross Operating Profit (GOP). India follows with anticipated an expected 6% increase in Total Revenue versus an anticipated 4% rise in GOP from 2025. Japan and South Korea round up the growth leaders with projected profitability growth of 4%, with both markets benefiting from strong travel demand and constrained supply. Conversely, several key markets face headwinds, with Greater China continuing to defy regional sentiment trends, where profits are expected to contract at an accelerated pace relative to revenue declines, a dynamic that suggests intensifying cost pressures and margin compression along with a continued challenged hotel demand.
Additional key findings from JLL APAC Hotel Operators’ Sentiment Survey 2025/2026 include but are not limited to:
- Food & Beverage Operations Heat Up: Approximately three in five hotels express optimism about their food and beverage performance in 2026, with operators expecting stable margins. Lifestyle brand hotels are particularly bullish about F&B prospects, reflecting the segment’s focus on experiential dining and beverage offerings that resonate with today’s traveler demands.
- Talent Retention Remains Critical Challenge: The survey reveals that one in two hotels continues to experience talent departure primarily driven by employees seeking better compensation packages, whether within the hospitality industry or in other sectors. Despite salary being the leading reason for employee turnover, salary increases rank only fifth among measures implemented by operators to retain talent, highlighting a potential disconnect in retention strategies.
- Capital Expenditure Focused on Operational Excellence: Product optimization is leading capital expenditure efforts, with operators prioritizing asset preservation and efficiency improvements. The top three CAPEX priorities for 2026 include operating systems investment, mechanical, electrical, plumbing (MEP) systems and brand standards compliance.
- Sustainability Progress with Challenges: 30% of hotels in the APAC region have achieved sustainability ratings, with brand standards continuing to be the driver for hotels investing in sustainable practices. However, operators identify persistent challenges including limited funding availability for sustainability initiatives, lack of visibility on return on investment for green technologies and the need for clearer metrics to measure sustainability impact. However, despite these challenges, progress continues in incorporating sustainability measures, driven by both guest demand and corporate responsibility commitments.
The 2025/2026 survey results demonstrate an industry that has learned to navigate uncertainty while maintaining strategic focus,” said Nijnens. “The projected GOP growth of 2-6% reflects operators’ confidence in their ability to drive both revenue and operational efficiency improvements. With profit grow decelerating in many markets, owners must work much harder to unlock value in their assets and to drive performance uplift. Embracing innovation, adopting new technologies, and leaning into experiential and lifestyle trends are avenues to creating this uplift.
