December proved to be a strong month for the hotel industry across the Asia Pacific (APAC) region, with 16 out of the 20 largest countries by hotel room supply reporting year-over-year growth in revenue per available room (RevPAR).

Despite December typically being the slowest month for most regions, except in the southern hemisphere, the performance signals a positive outlook for 2025.

Vietnam and Japan lead the region’s performance

Vietnam saw the highest RevPAR increase in December, thanks to strong growth in both occupancy and average daily rate (ADR). The country had consistently ranked in the top five for RevPAR among the region's largest markets throughout 2024.

This growth can be partly attributed to a favourable comparison with 2023, as Vietnam was slower to recover from the pandemic.

The country’s central and northern regions posted the third-highest RevPAR increase across the 28 largest APAC markets, with six out of seven submarkets showing double-digit growth.

Japan followed closely behind with strong year-round performance. The country’s major markets, particularly Tokyo, saw notable increases in RevPAR, driven mainly by higher ADR. Tokyo’s room rates were among the highest in the region, with occupancy consistently above 80%.

Japan’s performance is also supported by a favourable exchange rate, encouraging travel, especially from dollar-leaning economies.

Southeast Asia sees broad growth in RevPAR

Southeast Asia generally experienced positive RevPAR growth in December, with the Philippines, Indonesia, Singapore, Cambodia, and Myanmar all reporting increases.

 The Philippines saw growth due to a rise in ADR, led by its largest market, Metro Manila. Indonesia’s hotel performance was also boosted by strong ADR in Bali and Jakarta.

Singapore's growth was driven by higher occupancy, though ADR remained flat, while Cambodia and Myanmar both posted double-digit occupancy increases, despite a slight dip in ADR.

However, Malaysia was the only country in Southeast Asia to report a slight decline in RevPAR, breaking the overall positive trend.

China and other regions show mixed results

China, which comprises more than half of the region’s hotel supply and demand, had a less favourable December. The country experienced a 4.3% drop in RevPAR, due to decreases in both occupancy and ADR.

Only Shanghai saw a RevPAR increase, driven solely by higher ADR, while most other major markets in China struggled with performance.

In contrast, countries in the southern hemisphere, such as Australia and New Zealand, showed respectable RevPAR growth. Both countries saw gains in December, largely driven by a combination of higher ADR and improved occupancy.

In Australia, Sydney and Queensland Southeast performed well, while New South Wales and Melbourne experienced declines. New Zealand’s South Island led the way with the strongest RevPAR increase across the country.

This diverse performance across the APAC region suggests a mixed but generally positive outlook for the hotel industry moving into 2025.

While challenges remain in some areas, especially China, other markets such as Vietnam, Japan, and Australia indicate a strong recovery and ongoing growth.