Overall hotel performance across Asia Pacific markets continued a recovery in 2023, as most countries had removed their health and travel protocols in the first half of the year. However, investors were still very cautious with regional hotel investments which was estimated down to US $10.1 billion in 2023, largely attributable to the combined headwinds of high interest rates, lingering inflation, and global macroeconomic uncertainty. The sentiment may remain cautious for the regional hotel market during 2024, with demand levels expected to be similar to 2023 levels and ADRs anticipated to grow slowly. The market outlook will be dependent on the rebound of flights to pre-pandemic levels, construction progress, and credit easing.