The global hospitality landscape is in constant flux, demanding acute awareness of evolving trends. At MTE HCM 2025, Mr. Jesper Palmqvist, Regional Vice President for Asia Pacific at STR CoStar, offered a compelling “Global & Local Hotel Outlook” shedding light on crucial shifts impacting the industry worldwide, with a particular focus on the dynamic Asia Pacific region. Despite past challenges, the industry demonstrates remarkable resilience and adaptability, with significant growth in demand and evolving consumer behaviors.
Shifting Market Dynamics & Evolving Travel Patterns
Jesper Palmqvist highlighted a significant convergence of hotel segments, noting how the band between economy, mid-scale, and luxury hotel performance has tightened. Economy and mid-scale properties have notably caught up with the rest in various Southeast Asian markets. However, this doesn’t mean uniform rate progression; while luxury hotel rates are higher than in the past, other segments haven’t seen the same increase. For example, Phuket shows luxury rates 25% higher, a trend also observed in other markets.
Beyond segments, travel patterns are fundamentally changing. Palmqvist underscored shifts in how people travel and the emergence of new source markets, particularly in Vietnam. This diversification is also apparent in destination diversification, with a growing interest in emerging markets like Saudi Arabia and second and third-tier cities across Vietnam, China, and Indonesia. The long-discussed “work-live-play” concept is also no longer a niche, becoming a standard expectation for modern developments.
Mr. Jesper Palmqvist, Regional Vice President for Asia Pacific at STR CoStar – Source: MTE HCMC 2025
Innovation & Strategic Adaptation in Hospitality
Jesper Palmqvist also touched on the industry’s often-perceived slow adoption of technology, though discussions around Artificial Intelligence (AI) are clearly on the rise, indicating a future shift. Perhaps more immediately impactful is the evolution of franchising. Palmqvist detailed how franchising is adapting to this “new world,” especially prominent in Vietnam with an increased focus on residential integration and hybrid models. He specifically pointed out white-label solutions as a strong and successful trend, signaling a strategic adaptation within the sector. Sustainability is no longer a “why” but a core focus, with owners and brands prioritizing sustainable projects for investment and returns. These innovations reflect an industry keen to embrace flexible operational models and diversified revenue streams to meet contemporary demands.
