Record Surge in Hotel Investments Across Asia-Pacific Region in Early 2026

In a remarkable shift, the Asia-Pacific region experienced a stunning 54% increase in hotel investments during the first half of 2026, totaling $6.8 billion. This surge stands as the highest investment level seen in the past seven years, despite ongoing global challenges and economic uncertainty. JLL, a prominent global real estate services firm, presented these findings in Singapore on July 21, 2026.

According to Nihat Ekan, CEO of JLL Hotels & Hospitality Group in Asia Pacific, the momentum in hotel investments has exceeded expectations. This reflects the attractiveness of hotel assets in the region, supported by strong market fundamentals and robust investment activities. Ekan noted that investors are placing greater emphasis on accurate information and thorough due diligence as they allocate capital in this vibrant sector.

Regional Growth Drivers

The investment landscape exhibited varied performances across different regions, with three key markets driving growth:

1. Japan: Leading the charge, Japan recorded $1.9 billion in hotel investments—a staggering 75% increase year-on-year. Notable transactions included the acquisition of a hotel portfolio in Kanagawa by AB Capital Investment, the procurement of Pelican Hotels’ portfolio by Tosei, and the complete acquisition of Sapporo Real Estate Development by KKR and PAG, marking significant portfolio deals.

2. Mainland China: With investments totaling $1.5 billion, mainland China demonstrated a remarkable growth of 224% compared to the previous year. The second quarter witnessed heightened activity in the secondary market, where auction sales introduced distressed assets and undervalued properties, attracting greater investor interest. A prominent example was the R&F Group’s sale of nine properties, symbolizing this expanding trend.

3. Australia: Australia saw investment levels rise to $909 million, a 38% increase from the previous year. This growth was fueled by competitive investment activity among individual investors, family offices, and owner-operators targeting mid-sized urban and regional properties. Moreover, private equity and real estate funds focused on high-quality assets in prime locations, further contributing to the market momentum.

Buyer Profiles and Trends

In terms of active buyers during the first half of 2026, developers emerged as the most prominent, accounting for 22% of total transactions. This was followed by fund managers at 19% and ultra-high-net-worth individuals and family offices at 5%. While domestic capital remains a dominant force in hotel investments in the Asia-Pacific region, cross-border investors, particularly fund managers, are increasingly influential, especially in Japan, Australia, New Zealand, and South Korea.

A notable trend observed during this period was the acquisition of underperforming hotels for conversion into residential uses. In Hong Kong, for instance, four hotels were sold for a total of $340 million for conversion into student housing and co-living spaces. Similarly, Singapore witnessed Coliwoo's acquisition of the Park Avenue Changi Hotel for $79 million, marking a shift toward co-living adaptations.

This evolving trend underscores broader changes in the capital markets, where hotels are becoming an entry point for opportunistic and value-added investments in the housing sector in the Asia-Pacific region. However, such conversions mostly target older or underperforming properties while the fundamentals of the overall hotel market remain solid.

Julian Naoli, Head of Investment Sales for JLL’s Hotels & Hospitality Group in Asia, remarked, "Strong investment performance, vibrant capital influx from diverse investor profiles, and the emergence of new investment opportunities in hotel repositioning suggest continued growth for the hotel investment market in the Asia-Pacific region beyond the second half of 2026. We anticipate a year-end increase in investments of 15-20% compared to 2025."

Outlook for Japan

James Abe, Managing Director of JLL Japan’s Hotels & Hospitality division, noted that investor interest in Japanese hotel investments remains high, backed by solid operational performance and robust inbound demand. While buyers continue to exercise caution amidst a volatile funding environment, opportunities for meaningful long-term value appreciation in quality hotels and portfolios remain strong, indicating a favorable outlook for Japan’s hotel investment market in the latter half of 2026.

Performance metrics from January to May 2026 also support investor confidence; despite geopolitical tensions in the Middle East, the RevPAR (Revenue Per Available Room) across the Asia-Pacific region saw an average increase of over 6% in U.S. dollars. In particular, Australia-Oceania and Southeast Asia reported significant growth in ADR (Average Daily Rate), showcasing a robust recovery trajectory.

By country, Vietnam led RevPAR growth, followed closely by South Korea, New Zealand, and India, highlighting the sector's resilience amid external challenges.

In the realm of international tourist arrivals, the Asia-Pacific region experienced a 3% year-on-year growth in Q1 2026, with Oceania up by 9% and Northeast Asia by 5%. Although overall arrivals remained 11% below pre-pandemic levels (Q1 2019), the steady recovery in tourist numbers and stable RevPAR growth supported the regional hotel investment landscape.

In response to global economic uncertainties, investors have been raising their due diligence standards, adopting a more cautious approach; however, backed by strong hotel market fundamentals, buyers continue to demonstrate enduring interest, leading JLL to forecast a 15-20% increase in hotel investments for 2026 overall.

About JLL

JLL (NYSE: JLL) operates in over 80 countries, employing approximately 112,000 people as of June 30, 2026. For more than 200 years, it has supported clients across sectors such as office, retail, industrial, hospitality, residential, and data centers in leasing, sales, investment, project management, and management services. With $26.1 billion in revenue in 2025, JLL has also ranked in the Fortune 500®. The firm's mission is to shape the future of real estate for a better world, leveraging cutting-edge data and technology alongside its commitment to clients, employees, and communities. For more information, visit jll.com.