As AHICE Southeast Asia 2026 goes into its second and final day today, our focus shifts from Southeast Asia's potential as a hub for hospitality investment and the strategies global hospitality needs to become more crisis-proof in these uncertain days into the nations who are well in the lead for Southeast Asian hospitality.
The thing about the top five countries dominating the sector is that these are the same countries taking the lead in regional travel and tourism.
Do their strategies in the tourism line have anything to do with their dominance in hospitality or are the strategies different but work towards the same goals?
Current state of the industry as of March 2026
A May 2025 study from the Leading Hoteliers Network pointed out how the Southeast Asian hospitality has recovered steadily from the adverse effects of the pandemic and regional economic and sociopolitical issues.
As of Q1-2025, regional occupancy was at around 69 percent, an increase of nine percent from the same period in 2024.
Thailand and Vietnam led the recovery charge with 73 percent and 70 percent occupancy respectively.
Singapore, on the other hand, remained Southeast Asia’s best performing in hospitality, chalking up an occupancy rate of 81 percent in Q1-2025 and well throughout the rest of the year thanks to MICE and business travel.
Surging into the summer months of the Northern Hemisphere (June to August), occupancy rates throughout the region peaked at around 75 percent with a maximum ADR of US$125.
Vietnam and Cambodia were noted as the best performing budget markets in 2025, while Bali and Phuket continued to dominate the luxury hospitality sector.
The Southeast Asian top five
Keeping this in mind, the Southeast Asian hospitality sector is actually led by six countries, as two actually tied for fifth place.
To date, these are as follows:
- Thailand The country remains the regional leader in terms of hospitality revenue and earnings, as well as established tourism infrastructure. Thailand also boasts the highest concentration of five-star hotels and resorts anywhere in the region, primarily centred in Bangkok, Chiang Mai, and Phuket. The Tourism Authority of Thailand (TAT)’s 2026 thematic Healing is the New Luxury further cements its reputation as an epicentre of luxury hospitality and wellness experiences;
- Indonesia The largest country in the region has evolved into a high-growth market, and is projected to become the most profitable one thanks to significant investment and promotion over the past couple of years. The market mix here is predominantly divided between Jakarta for MICE and Bali for wellness and luxury hospitality;
- Vietnam The Indochinese nation is seen as the region’s Next Big Thing in hospitality as the number of luxury accommodations available is set to rise thanks to the emergence of new properties from global hospitality management firms, along with a 39.5 percent increase in tourist arrivals;
- Singapore One of the most reliable markets for hospitality, especially now that the country is ramping up its roster of attractions and the overall quality of its tourism and hospitality services. Also, while Jakarta may be gaining on it, the city-state’s reputation as a MICE destination continues to grow, especially as it is being considered as an alternative venue for global MICE due to the ongoing conflict in West Asia; and
- Malaysia & the Philippines Tied in the fifth slot, both nations have recovered significantly from the pandemic. Malaysia, in particular, is raising the bar for its MICE and business events tourism sector in secondary cities Penang and Kota Kinabalu. The Philippines, on the other hand, is welcoming an array of new hospitality brands whilst attracting niche markets to areas like Siargao and La Union (surfing), Tagaytay (wellness), and Clark (an alternative to Manila and Cebu for MICE.)
