To accommodate a broader spectrum of events beyond MICE, hotels are implementing changes.

“Hotels need to be agile enough to adapt to the evolving needs of diverse event types and cater to the unique preferences of different audiences,” says Bracciani.

For instance, flexible event spaces are becoming increasingly common. “Large ballrooms are now often designed to be easily subdivided into smaller, more intimate spaces,” says Bracciani. “This flexibility allows hotels to attract a wider range of events, from intimate weddings to larger business conferences.”

Despite the challenges posed by rising costs, the sector is proving popular with investors. Hotel transaction volumes in the Asia Pacific region are projected to reach $12.8 billion in 2025, marking a 5% year-on-year increase, JLL data shows.

“Growth in trading performance in 2025 is likely to mirror that of last year amid uncertainty surrounding the region," says Bracciani. “Southeast Asia, India, and Japan are poised for robust growth, while Australia is expected to expand moderately, and Greater China is anticipated to experience a gradual recovery.”