Why hotels are betting big on corporate events

The resurgence of corporate events is bolstering confidence in the ongoing recovery of the hotel sector.

Over 80% of hotel operators surveyed by JLL in Asia Pacific anticipate an increase in revenue from meetings, incentives, conferences, and exhibitions (MICE) in 2025. Meeting planners in the region are also bullish on meetings this year, with over half expecting to produce more, according to data from event software provider Cvent.

Despite the current macroeconomic and geopolitical uncertainties, the MICE industry is showing signs of a return to normalcy, says Marina Bracciani, Vice President, Hotels Research, Asia Pacific, JLL.

“The MICE industry is closely linked to economic conditions,” she says. “Particularly in countries with stronger post-pandemic economic recoveries, hotels are seeing more opportunities to capitalize on this growth.”

This coincides with the robust growth of international and domestic tourism arrivals in key markets like South Asia and Maldives, Southeast Asia, and North Asia, which outperformed the rest of the region last year. Take Japan, which welcomed a record 36.8 million visitors in 2024, the highest in its history.

Beyond simply an increase in visitor numbers, the profile of travelers is also evolving.

“We expect to see a continued diversification of travel styles, including 'bleisure' travel, where business travelers extend their trips for leisure activities,” says Bracciani.

Need for flexibility

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.”

Leveraging technology

Many hotels are rolling out new technologies to enhance the experience within their venues, such as the use of holographic projections, which allow for seamless integration of in-person and virtual attendees.

A notable example is Marriott Hotel in Adelaide, which launched AI-driven technologies including high-quality real-time translations and tracking cameras for speakers to improve audience engagement in the venue.

Technology is also playing a crucial role in addressing operational challenges that have a substantial impact on the bottom line, particularly in traditionally labor-intensive functions like the front office and food and beverage (F&B).

“Issues such as rising inflation and staffing shortages are urging hotels to become more creative in optimizing their existing resources,” says Bracciani.

For instance, Singapore’s Millennium Hotels and Resorts introduced an AI-powered voice assistant that integrates cloud-based phone systems, task management, in-room dining, and smart room controls — minimizing manual tasks and streamlining overall operations in their properties.

Leveraging technology is especially crucial for hotels to cope with large events while maintaining profitability in the face of rising inflation, Bracciani says.

“Key industry benchmarks like average daily rate (ADR), occupancy, and revenue per available room (RevPAR) have demonstrated significant growth, but escalating operational costs are outpacing this growth and eroding profitability.”

Cautious optimism

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.”