Pan Pacific reports demand recovery, plans 10 regional hotel projects
The Singapore-based group says a rebound in occupancy and room rates could help it meet full-year targets after a sharp second-quarter downturn.
Pan Pacific Hotels Group says a recovery in demand during the second half of 2026 could enable it to meet its full-year targets. The Singapore-based operator is also proceeding with 10 projects involving new hotels and major renovations across Southeast Asia in 2027.
Speaking to CNA’s Asia First on Oct 15, chief executive Choe Peng Sum said strong performance at the group’s Asian hotels in the first quarter was followed by a steep second-quarter decline, which he attributed to the United States-Iran war. The conflict disrupted travel from the Middle East to its hotels in Kuala Lumpur, Jakarta and Bangkok.
Choe said occupancy and room rates recovered during the third quarter as leisure and corporate demand improved. The group expects that recovery to extend through the final quarter. Its Singapore hotels posted double-digit growth in the third quarter, helped by the Formula 1 Grand Prix and business conferences, he said.
The 2027 projects cover Singapore, Malaysia, Thailand, Vietnam, Indonesia, Cambodia and the Philippines. They include luxury hotel developments in Bangkok and Phnom Penh.
Choe identified Vietnam, Malaysia and Singapore as particularly strong markets. He said Vietnam was attracting tourism beyond Hanoi and Ho Chi Minh City, alongside business travel linked to expanding high-tech industries. The group’s hotels in Kuala Lumpur, Penang, Langkawi and Malacca also recorded strong occupancy and room rates.
Higher travel costs and geopolitical uncertainty are prompting affluent Asian travellers to choose shorter regional holidays, Choe said, without necessarily reducing spending on accommodation or experiences. He also said China-Japan tensions were redirecting some Chinese travellers to Southeast Asia, with more affluent independent visitors arriving from China and India.
