Hotel ADRs drop 5% YoY in Q1 2025

The average daily rate fell to $299.

Singapore’s average daily rate (ADR) dropped 5% year-on-year (YoY) to $299 (US$232) in Q1 2025, Colliers reported.

According to Colliers, this decline reflects shifting pricing dynamics as mature destinations adjust to evolving travel patterns and guest expectations.

In the Asia Pacific region, ADR rose 3.3% YoY to $118 (US$92), from 0.1% in 2024. 

Phuket (19.8%), Tokyo (14.8%), New Delhi (14.8%), Mumbai (13.8%), and Osaka (11.4%) led ADR growth in APAC, supported by strong domestic demand, booming international travel, and strategic market positioning. 

Meanwhile, Hong Kong saw a 3.8% YoY drop to $220 (US$171).

“The next phase of growth will likely depend on boosting occupancy, improving operational efficiency, and attracting higher-yield guests. Encouragingly, easing staffing shortages are enabling hotels to scale operations and enhance service without straining resources,” Govinda Singh, executive director for APAC Capital Markets Hotels & Hospitality and Advisory at Colliers said.