Apac Hotel Investment Volume Falls 23 Y O Y 1H2025 Jll
Asia Pacific saw a decline in hotel investments during the first half of 2025, as the uncertain global macroeconomic climate resulted in a more cautious investment landscape. According to research conducted by JLL, the region’s hotel deals totaled US$4.7 billion ($6 billion), marking a 23% decrease from the same period in the previous year.
Nihat Ercan, CEO of JLL Hotels & Hospitality Group for Asia Pacific, explains that this decline in investment can be attributed to a shift in the hotel investment landscape, where a realignment of capital sources is taking place. Investors were more selective in their investments during the first half of 2025, focusing on more established hospitality markets in the region. In fact, 84% of the hotel transaction volume during this period was concentrated in just five countries.
Among these top five countries, Japan led the way with US$1.5 billion in hotel transactions, followed by Greater China (US$744 million), Australia (US$664 million), Singapore (US$546 million), and South Korea (US$504 million). However, JLL reports that the gap between buyers and sellers has widened, leading to prolonged due diligence periods and ultimately contributing to the decline in investment volume.
Despite this, there are still bright spots in the market. Ercan notes that private capital is actively seeking prime hospitality assets with both defensive income characteristics and growth potential. As a result, JLL has observed a 6% year-on-year increase in capital invested by private equity firms and a 54% year-on-year surge in investments by high-net-worth individuals during the first half of 2025.
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Looking ahead, JLL predicts that investment activity will pick up in the second half of the year, bringing the full-year transaction volume to US$12.8 billion, a 5% increase from 2024 figures. Ercan expects private equity funds, family offices, and regional operators with access to private capital to be the most active buyers in the coming months.
In Singapore, JLL predicts a full-year hotel transaction volume of US$1.2 billion. According to Senior Vice President for Investment Sales Tan Ling Wei, investors in the city-state are primarily interested in two types of properties: hybrid hotels with extended stay components that attract private equity investments, and luxury boutique hotels that appeal to high-net-worth individuals.
Finally, Tan notes that Singapore’s heritage hotels and other properties offering authentic guest experiences and integration within the city’s cultural fabric are particularly attractive investments for buyers seeking diversification and long-term capital value.