Asia Pacific hotel operators expect profitability to remain stable, trending upwards at a moderate level in 2026 despite global economic and geopolitical uncertainty, according to JLL’s latest research.
In the company’s APAC Hotel Operators’ Sentiment Survey 2025/2026, respondents revealed a cautiously optimistic outlook, aggregately predicting gross operating profits to increase between 2-6% year-on-year in 2026.
17% 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,” said JLL’s Hotels and Hospitality Group, Asia Pacific Senior Managing Director, Head of Advisory and Asset Management, Xander Nijnens.
“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.”
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.”
Nijnens said the survey results demonstrate an industry that has “learned to navigate uncertainty while maintaining strategic focus”.
“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,” he said.