SINGAPORE, 27 October 2025: The Asia Pacific hotel investment market will increase in 2026 as strong travel demand and changing tourism habits will offset global economic volatility and uncertainty.
According to JLL, investment volumes in 2026 will total approximately USD13.3 billion, up from the revised 2025 forecast of USD11.9 billion.
JLL’s forecast underscores a market characterised by strong buyer appetite confronting increasingly constrained asset supply, with safe-haven destinations commanding premium valuations while emerging markets present relative value opportunities. Furthermore, continued macroeconomic uncertainty is driving extended due diligence timelines and heightened focus on cost management among institutional investors, leading to more selective capital deployment strategies across the region, causing a more stable investment outlook.
JLL’s analysis has identified Japan, Singapore, and Australia as remaining highly sought-after destinations in the latter parts of 2025 and into 2026, particularly among private wealth investors targeting landmark assets. Elsewhere, the firm sees opportunities in markets, including Vietnam, which is gaining significant traction as an emerging market.
“A challenging economic environment and uncertainty in geopolitical spheres influence both investment decisions and travel habits. As a result, the Asia Pacific hospitality investment landscape is reflective of a maturing market where quality and operational fundamentals increasingly drive capital allocation decisions,” said JLL’s Hotels & Hospitality Group, Asia Pacific CEO Nihat Ercan. “While transaction volumes remain below historical peaks, the underlying tourism recovery story provides compelling support for long-term asset values.”
Market fundamentals remain robust, with UN Tourism forecasting continued international arrivals growth of 3% to 5% throughout 2025. Regional performance data supports this optimism, with international arrivals in the Asia Pacific rising 11% year-on-year in the first half of 2025, reaching 92% of pre-COVID levels. North-East Asia demonstrated the strongest recovery trajectory, with 20% growth, while leading destinations, including Japan and Vietnam, each recorded exceptional 21% increases in arrivals, and South Korea delivered 15% growth.
Revenue performance metrics further validate a hypothesis of investment stability in 2026. Asia Pacific’s hotel industry has delivered a respectable 3% growth in revenue per available room (RevPAR) year-to-date August 2025.
JLL’s revised 2025 transaction volume forecast of USD11.9 billion reflects the impact of prolonged transaction timelines and enhanced due diligence requirements amid ongoing geopolitical uncertainty. Liquidity is expected to remain concentrated in five core markets — Japan, Australia, Greater China, Singapore, and South Korea — which continue to attract the majority of institutional capital flows.
“Despite near-term headwinds, the structural drivers supporting Asia Pacific hospitality investment remain intact,” said Ercan. “Volatility can’t be ignored, but the region’s growing middle class, strategic geographic positioning, and improving tourism infrastructure create compelling long-term growth prospects that sophisticated institutional investors recognise and are positioning to capture.”
(Source: JLL)
