Asia Pacific hotel investment projected to cross $13.3 billion in 2026
Asia-Pacific’s hotel investment market is regaining momentum in 2025, with transaction volumes on track to hit $11.9 billion, according to a new forecast by JLL. Despite a slight downward revision from earlier projections of $12.8 billion, the region’s hospitality sector is showing renewed strength as investor confidence improves and cross-border capital returns to key markets.
JLL expects deal activity to accelerate in the second half of 2025 as delayed transactions close and institutional investors reposition portfolios to capture a sustained tourism rebound. Japan, Australia, Greater China, Singapore, and South Korea continue to draw the bulk of institutional capital, while Vietnam and other emerging markets are benefiting from surging visitor arrivals and rising room demand.
“Despite ongoing economic and geopolitical uncertainty, the Asia-Pacific hospitality investment landscape is maturing,” said Nihat Ercan, CEO of JLL Hotels & Hospitality Group, Asia Pacific. “Capital allocation is increasingly driven by asset quality and operational fundamentals rather than pure yield. While total volumes remain below pre-pandemic highs, the sector’s recovery in occupancy and revenues is reinforcing long-term investor conviction.”
According to UN Tourism, international arrivals across Asia-Pacific rose 11% year-on-year in the first half of 2025, reaching 92% of pre-COVID levels. North-East Asia led the recovery with a 20% increase in arrivals, supported by strong inbound flows to Japan and Vietnam (each up 21%) and South Korea (up 15%). Regional revenue per available room (RevPAR) rose 3% year-to-date through August, underscoring the sector’s operational resilience.
Looking ahead, JLL projects Asia-Pacific hotel investment volumes to rise more than 10% in 2026, reaching $13.3 billion. The firm expects continued travel demand, a growing middle class, and expanding tourism infrastructure to provide a stable foundation for further capital deployment.
Ercan said that while macroeconomic uncertainty is lengthening deal timelines and due diligence cycles, “structural drivers remain intact.” He added: “We’re seeing strong buyer appetite confronting a constrained supply of quality assets. Safe-haven destinations are commanding premium valuations, while emerging markets continue to present relative value opportunities.”
Hong Kong, though a smaller market in regional terms, emerged as a standout performer in 2025. The city’s hotel investment volume more than doubled to $456.6 million in the first three quarters — up 106% from a year earlier — driven by the landmark $255 million sale of Hotel COZi Harbour View and renewed investor interest following a subdued 2024.
“Liquidation pressures from developers and high-net-worth individuals are releasing opportunities into the market, while private equity groups are capitalizing on valuation gaps,” said Ling Wei Tan, Senior Vice President at JLL Hotels & Hospitality Group. “We also expect more hotels to be converted into student housing as part of Hong Kong’s Hostels in the City Scheme, reflecting the market’s evolving use cases.”
Overall, analysts say Asia-Pacific’s hotel sector is entering a more measured yet structurally stronger phase. Even as macroeconomic volatility tempers near-term deal flow, robust tourism growth and disciplined capital strategies are positioning the region for sustained long-term investment expansion.
