Investment in Asia Pacific hotels reached $4.7 billion in the first half of 2025, marking a 23% decline from the same period in 2024, according to JLL. The decrease reflects a more cautious investment environment amid global economic uncertainties. Japan led the region with $1.5 billion in transactions, followed by Greater China, Australia, Singapore, and South Korea.
The decline in investment volume is attributed to a shift towards more established hospitality markets, with 84% of transactions occurring in these five countries. Nihat Ercan, CEO of JLL Hotels & Hospitality Group, Asia Pacific, noted, “The level of investment moderation is indicative of a more cautious investment market whereby a realignment of capital sources in the hotel investment landscape is occurring.”
Private equity firms have increased their capital allocations to hospitality assets by 6% year-over-year, aiming to capitalise on market dislocations. High Net Worth Individuals (HNWIs) have also become more active, with their hotel investments growing by 54% compared to last year.
Despite the decline, the long-term outlook for the region’s hospitality industry remains positive. International tourist arrivals in Asia Pacific rose by 12% in Q1 2025, boosting revenue per available room (RevPAR). Key cities like Tokyo and Sydney reported strong occupancy rates and average daily rates (ADR) above pre-pandemic levels.
JLL projects total hotel transaction volume in Asia Pacific to reach $12.8 billion for the full year 2025, a 5% increase from 2024. The second half of the year is expected to see accelerated investment activity as pending deals are finalised.
“`
