Hot topics from CBRE MarketView 2020, as regional tourism and hospitality industries suffer worst year on record.

Asia Pacific recorded the largest decline in arrivals of any region in 2020. The number of visitors fell 84% y-o-y, largely due to travel restrictions enforced since March 2020.

Governments and industry players continue to implement various policies and partnerships to revive the travel and tourism industries.

The gradual rollout of vaccines is expected to restore some confidence in travelling and lead to the gradual easing of travel restrictions, although the outlook remains opaque.

The near total shutdown in international travel during 2020 led to sharp falls in occupancy and ADR. Regional occupancy declined to 44.7%, while ADR fell by 24.5% y-o-y to US$74.51.

RevPAR stood at US$34.0 in 2020, representing a drop of 50.4% y-o-y.

Asia Pacific hotel transaction volume reached US$6.7 billion in 2020, a fall of 56% y-o-y compared to 2019.

With the hotel sector more vulnerable to the impact of measures to contain the pandemic than most other property sectors, investors may continue to be discouraged from entering the market by the prospect of underwriting future incomes and accurately pricing the risk of these forecasts.

CBRE Market View Asia Pacific Hotels H2 2020 can be downloaded via this link.

This research report was published by CBRE. 

Similar to this:

CBRE Hong Kong Advises on Weave Living’s Acquisition of En-Bloc Residential Building in Mid-Levels West for HK$295 Million

CBRE Hong Kong acts as strategic leasing partner for third IWG signature centre in Quayside