Asia Pacific volumes to cross USD 13.3 billion in 2026
Hong Kong, 12 November 2025 – Hong Kong’s hotel investment soared to USD 456.6 million (HKD 2.7 billion) in the first three quarters of 2025, a sharp increase from USD 221 million during the same period in 2024, according to analysis by JLL.
This uplift was primarily underpinned by the low volume of hotel transactions during the same period in 2024 as well as the landmark sale of Hotel COZi Harbour View at the start of the year, which transacted at close to HKD2 billion.
Ling Wei Tan, Senior Vice President, JLL Hotels & Hospitality Group, said: “For the market outlook next year, continued liquidation pressure from developers and High Net Worth Individuals (HNWIs) will drive transaction activity, with private equity and institutional investors capitalising on the performance-valuation gap. At the same time, student housing conversions are set to accelerate with the influx of mainland Chinese students, supported by the government’s recent Hostels in the City Scheme, which enables the conversion of existing commercial buildings, including hotels, into student hostels. Together, these factors are expected to further accelerate the momentum of hotel investment in Hong Kong.”
According to JLL’s latest forecast, total hotel transaction volume across the Asia-Pacific region is expected to reach USD 11.9 billion in 2025. The estimate has been revised slightly down from the earlier projection of USD 12.8 billion, reflecting the impact of prolonged transaction timelines and enhanced due diligence requirements amid ongoing geopolitical uncertainty. Nonetheless, investment activity is expected to gain momentum in the second half of the year, as a backlog of deals is anticipated to close.
Liquidity is expected to remain prevalent in the five core markets of Japan, Australia, Greater China, Singapore and South Korea, drawing the majority of institutional capital. Concurrently, markets like Vietnam should benefit from strong tourism momentum.
UN Tourism forecasts continued international arrivals growth of 3% to 5% throughout 2025. Regional performance data supports this optimism, with Asia-Pacific international arrivals rising 11% year-on-year in the first half of 2025, achieving 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% arrival increases, and South Korea delivered 15% growth.
Revenue performance metrics further validate a hypothesis of investment stability in 2026. Asia Pacific’s hotel industry has deliverable a respectable 3% growth in revenue per available room (RevPAR) year-to-date August 2025.
Asia-Pacific investment volume forecast to increase by over 10% in 2026
Looking ahead to 2026, JLL forecasts that the Asia-Pacific hotel investment market will maintain its growth momentum, with total investment volumes expected to rise further to USD 13.3 billion — an increase of more than 10% compared with 2025. Despite persistent global economic and geopolitical challenges, strong travel demand, changing tourism habits and sustained investor interest are expected to provide stable and enduring capital support for hotel assets.
Nihat Ercan, CEO, JLL Hotels & Hospitality Group, Asia Pacific, said: “A challenging economic conditions and ongoing geopolitical uncertainty are influencing both investment decisions and travel behaviour. As a result, the Asia-Pacific hospitality investment landscape reflects a maturing market, where capital allocation is increasingly driven by asset quality and operational fundamentals. While transaction volumes remain below historical highs, the underlying tourism recovery provides compelling support for long-term asset values. Overall, despite near-term headwinds and volatility risks, the structural drivers supporting Asia-Pacific hospitality investment remain intact. These include a growing middle class, strategic geographical positioning, and improving tourism infrastructure, presenting compelling long-term growth prospects for sophisticated institutional investors.”
“Our 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,” he added.