This week’s Five-Star Weekly Briefing highlights current trends, investments, and developments in the hotel sector.
Investment volumes have reached USD 12.1 billion year-to-date, supported by strong travel fundamentals, including a forecasted 9% rise in air travel for 2025. Investors are focusing on value-add assets in markets such as Japan, Korea, Australia, and Singapore, with ADR growth continuing to outpace inflation. Global Asset Solutions is expanding its regional portfolio, now managing a high-profile collection of luxury Marriott and Hyatt properties across the Maldives, Phuket, and Melbourne.
Luxury expansion and urban development projects are moving forward at pace. IHG will grow its luxury footprint with the Regent Karuizawa onsen resort in Japan, opening in 2028, while the Park Hyatt Tokyo reopens this December following a major renovation. Capella Lodge on Lord Howe Island has completed a three-month refurbishment, and large-scale projects in Australia include the $75 million Novotel Geelong expansion, a $180 million 5-star tourism precinct in North Lakes, and the redevelopment of Melbourne’s Waterside Hotel into a seven-level landmark. New models are also reshaping the landscape, from the launch of Drifter’s hotel-hostel hybrid in Australia to the rise of branded residences and hotel conversions into student housing and co-living.
On the operational front, hoteliers are prioritising efficiency gains through targeted AI initiatives like predictive maintenance and automated housekeeping, which often deliver returns within two years. Meanwhile, the Northern Territory will form Tourism and Events NT in 2026 to better integrate events with tourism, and Choice Hotels Asia-Pacific has partnered with the NBL and NBL1, boosting its visibility and offering exclusive rates across Australia and New Zealand.