The luxury hotel market in Asia Pacific has experienced a significant surge in investment, with transaction volumes increasing by 77% from 2017 to 2025, according to JLL. This growth reflects a robust confidence in luxury hospitality as a valuable and income-generating asset, with 2025 transactions reaching approximately $2.1b.
Luxury hotel transactions in 2025 accounted for nearly 20% of all hotel deals in the region, a substantial increase from the 8% share in 2017. This marks a return to pre-COVID levels, with 2025 volumes among the highest since 2019, when transactions exceeded $2.4b. Xander Nijnens, Head of Advisory and Asset Management, Asia Pacific, JLL Hotels & Hospitality Group, noted the sector’s resilience and the growing interest from diverse investors seeking prestige and long-term growth.
The luxury hotel segment is evolving, with a narrowing occupancy gap between luxury and mainstream hotels, indicating year-round demand. This shift is attracting both capital and development, with luxury hotel supply growing at a steady 4% annually over the past decade. Global operators are introducing new concepts, such as wellness retreats and culturally immersive experiences, to cater to specific guest preferences.
Despite higher operating costs, luxury hotels maintain competitive profit margins, demonstrating strong pricing power. Markets like Tokyo, Hong Kong, and Seoul have emerged as leaders in the luxury segment. Marina Bracciani, Vice President, Hotels Research Lead, Asia Pacific, JLL, highlighted the segment’s ability to adapt to changing guest preferences whilst maintaining premium positioning, suggesting continued growth and pricing power in the coming years.
