STR predicts moderate RevPAR gains across key APAC markets
Supply growth across the region is also expected to remain modest.
STR and Tourism Economics forecast that revenue per available room (RevPAR) across its 16 Asia Pacific (APAC) forecast markets will increase by 3.6% in 2026 and 2.5% in 2027, driven by an average average daily rate (ADR) growth of 2.4%.
The 16 forecast markets include Melbourne (Australia), Bangkok (Thailand), Mumbai (India), Auckland (New Zealand), Sanya, Shanghai, and Chengdu (China), Singapore, Hong Kong, and Tokyo (Japan).
For 2026, ADR has been upgraded in 11 of the 16 markets, while 15 of the 16 markets are expected to see both rate and RevPAR rise year-over-year.
Supply growth across the region remains modest. Only four markets — Melbourne, Bangkok, Mumbai, and Auckland — are expected to see supply growth above 2% in 2026, and for three of these, 2026 marks the tail end of a supply boom, with growth projected to slow sharply from 2027.
The 2026–27 supply slowdown reflects market maturity, as APAC markets have expanded significantly over the past decade. Across the 16 forecast markets, the compound annual growth rate (CAGR) in supply from 2016 to 2026 is +3.5%, ranging from +1.1% in Sanya to +6.2% in Chengdu, with 12 markets averaging annual supply growth of 2% or more.
“With these markets now well supplied, adding rooms has a smaller impact on overall growth. Nearly 22,000 rooms are expected to open across the 16 markets in 2026, averaging just 1.1% growth year-over-year relative to 2025,” STR said.
The 16 forecast markets include Melbourne (Australia), Bangkok (Thailand), Mumbai (India), Auckland (New Zealand), Sanya, Shanghai, and Chengdu (China), Singapore, Hong Kong, and Tokyo (Japan).
For 2026, ADR has been upgraded in 11 of the 16 markets, while 15 of the 16 markets are expected to see both rate and RevPAR rise year-over-year.
Supply growth across the region remains modest. Only four markets — Melbourne, Bangkok, Mumbai, and Auckland — are expected to see supply growth above 2% in 2026, and for three of these, 2026 marks the tail end of a supply boom, with growth projected to slow sharply from 2027.
The 2026–27 supply slowdown reflects market maturity, as APAC markets have expanded significantly over the past decade. Across the 16 forecast markets, the compound annual growth rate (CAGR) in supply from 2016 to 2026 is +3.5%, ranging from +1.1% in Sanya to +6.2% in Chengdu, with 12 markets averaging annual supply growth of 2% or more.
“With these markets now well supplied, adding rooms has a smaller impact on overall growth. Nearly 22,000 rooms are expected to open across the 16 markets in 2026, averaging just 1.1% growth year-over-year relative to 2025,” STR said.
