#Japan #Tokyo #JLL #Asia-Pacific #hotel investment

Future of Hotel Investment in Asia-Pacific

In an insightful analysis released from Singapore, JLL, a leading global real estate services firm, anticipates that the hotel investment market in the Asia-Pacific region will continue its upward trajectory despite global economic fluctuations and uncertainties. Their projections indicate that the hotel investment volume will hit approximately $13.3 billion in 2026, surpassing the expected $11.9 billion in 2025.

Demand Meets Limited Supply

JLL notes that buyer demand remains high; however, the availability of properties for acquisition is limited. Consequently, investments in stable markets are attracting premium valuations, while emerging markets provide relatively affordable investment opportunities. The ongoing macroeconomic uncertainties have led institutional investors to extend their due diligence periods, emphasizing cost management. This has resulted in a more selective investment strategy across the region, contributing to a stabilization of the investment environment.

Key Investment Destinations

Between late 2025 and 2026, prominent investment interests are directed towards Japan, Singapore, and Australia, particularly from private wealth investors favoring symbolic investment properties. Emerging markets like Vietnam are also gaining significant attention as viable investment options.

Nihat Ekan, CEO of JLL Hotels & Hospitality Group Asia Pacific, commented, "Challenging economic conditions and geopolitical uncertainties are influencing investment decisions and tourism trends; however, as the hotel investment market matures in the Asia-Pacific region, there is a growing emphasis on quality and the strength of the business foundation during asset allocation. Although investment amounts may not reach past peaks, the recovery in tourism demand supports long-term asset value."

Resilient Market Fundamentals

According to projections by the United Nations World Tourism Organization (UN Tourism), the number of international travelers is expected to grow by 3-5% in 2025 year-over-year. In the first half of 2025, the region saw an 11% increase in international tourists compared to the same period last year, reaching 92% of pre-pandemic levels. Northeast Asia have shown the strongest recovery with a 20% increase, especially in major tourist destinations such as Japan and Vietnam, which recorded increases of 21% and 15% respectively.

Revenue Trends and Stability

Revenue indicators also underline the stability of investments heading into 2026. As of August 2025, the hotel industry in the Asia-Pacific region has reported a 3% increase in year-to-date RevPAR (Revenue per Available Room) demonstrating positive performance. JLL has revised its hotel investment forecast for 2025 to $11.9 billion, reflecting longer transaction times and enhanced due diligence due to persisting geopolitical uncertainties. Investment liquidity remains concentrated in five key markets: Japan, Australia, Greater China, Singapore, and South Korea, which are expected to be the main focus for institutional investors.

Ekan remarked, "Despite the short-term headwinds of economic uncertainty and market volatility, the foundations supporting growth in Asia-Pacific hotel investments remain robust. Though market fluctuations are undeniable, institutional investors are focusing on the growth potential of the Asia-Pacific region driven by the expanding middle class, strategic geographic advantages, and advanced tourism infrastructure."

Japan's Investment Landscape

James Abe, Managing Director of JLL Japan's Hotels & Hospitality Division, stated, "Japan's hotel market continues to attract interest from both domestic and foreign investors. The influx of international tourists has led to strong hotel performance. Additionally, the yen's depreciation has boosted travel demand towards Japan and made property investments more appealing to overseas investors. With relatively low borrowing costs from banks, the financial environment remains favorable. These factors converge to position Japan as a key hotel investment destination in the Asia-Pacific region through 2026."

For further insights, please visit JLL’s website.

About JLL

JLL (NYSE: JLL) is a global real estate services firm that provides a comprehensive range of services related to real estate. Covering areas such as office, retail, industrial, hotel, residential, and more, JLL facilitates leasing, buying, investing, developing, and managing properties. Selected as a Fortune 500® company, JLL operates in 80 countries with approximately 112,000 employees, projected to generate $23.4 billion in revenue in 2024. Under the corporate mission "Shape the future of real estate for a better world," JLL aims to guide clients, employees, communities, and the world towards a brighter future. JLL is the corporate name and registered trademark of Jones Lang LaSalle Incorporated.