Taiwan hotel occupancy rebounds but still lags pre-pandemic levels

Uneven recovery is evident across various hotel markets.

Taiwan’s international tourist hotel sector continued its post-pandemic recovery in 2025, with occupancy rates rebounding across major cities, although overall performance has yet to fully return to pre-COVID levels, according to Savills Taiwan.

In its latest hospitality market update, Savills reported that the nationwide average hotel occupancy rate reached 64.1% in the first nine months of 2025, marking a 0.9 percentage point increase year-on-year. Despite the improvement, the figure remained marginally below pre-pandemic benchmarks, reflecting the uneven recovery of inbound tourism.

Taipei City outperformed other urban markets, with an average occupancy rate of 71.7%, although this was still 3.6 percentage points lower than pre-pandemic levels, Savills noted. Performance among leading international hotels in the capital was notably strong, particularly in the Xinyi District.

According to Savills, W Taipei and Le Méridien Taipei have both fully recovered in terms of occupancy, recording rates of 75.9% and 84.2%, respectively. The Taipei Marriott Hotel led the market, posting the highest occupancy rate at 85.6%, highlighting sustained demand for well-located, internationally branded hotels.

Outside the capital, Kaohsiung City recorded the strongest year-on-year improvement. Savills attributed a 3.7 percentage point increase in occupancy to 60.2% to the hosting of large-scale concert events, which helped drive domestic and regional travel demand. However, the consultancy noted that occupancy in Kaohsiung remains significantly below pre-pandemic levels, underscoring the city’s reliance on event-led tourism.

On pricing, Savills said average daily rates (ADR) across Taiwan surged in 2023, driven by “revenge travel” demand and labour shortages in the hospitality sector. Since then, ADR growth has moderated due to the slower recovery of inbound visitor numbers.

In Q3 2025, Taiwan’s average ADR stood at NT$4,747, below the peak levels recorded in 2023, Savills reported. In Taipei, ADR remained resilient at NT$5,168, staying above the NT$5,000 mark for the third consecutive year.

Luxury hotels continued to command a significant premium. W Taipei recorded the highest ADR in the market at NT$9,483, representing an increase of around 8% compared with 2019, while Le Méridien Taipei posted an ADR of NT$9,322, nearly 4% higher than pre-pandemic levels, according to Savills.

The high-end segment is set to face increased competition following the opening of the Capella Group’s first hotel in Taiwan in April. The 86-key luxury property in Taipei has room rates starting from NT$20,000 per night, directly challenging the upper end of the capital’s hospitality market, Savills noted.

In Kaohsiung, ADR reached NT$3,415, ranking the city second among major markets despite a hotel landscape dominated by domestic operators. Kaohsiung Marriott Hotel, one of the city’s newer international tourist hotels, achieved an ADR of NT$4,940 — a 44% premium over the city average — alongside an occupancy rate of 63.9%, highlighting the pricing power of international brands even in secondary markets.

Looking ahead, Savills said the pace of recovery will continue to hinge on the rebound of inbound tourism and the ability of hotels to balance occupancy growth with rate sustainability, particularly as new luxury supply enters the market.