Apac Hotel Investment Volume Falls 23 Y O Y 1H2025 Jll
Hotel investment in the Asia Pacific (Apac) region saw a decline in the first half of 2025 due to global economic uncertainties. JLL’s research shows that Apac hotel deals totaled US$4.7 billion ($6 billion) during this period, a decrease of 23% compared to the same period last year.
JLL’s CEO for Apac Hotels & Hospitality Group, Nihat Ercan, explains that the decline in investment can be attributed to a more cautious market, where a realignment of capital sources is taking place. Investors were more selective in their choices, focusing on established hospitality markets in the region. In fact, 84% of the total hotel transaction volume in the first half of 2025 occurred in just five countries. Japan was at the top of the list, with US$1.5 billion worth of hotel transactions, followed by Greater China (US$744 million), Australia (US$664 million), Singapore (US$546 million) and South Korea (US$504 million).
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However, despite this decline, there were still bright spots in the market. Private capital investors were actively seeking prime hospitality assets, leading to a 6% year-on-year increase in investment volumes. High-net-worth individuals (HNWIs) were also investing heavily in the hotel sector, with a 54% increase in investment in the first half of 2025.
JLL expects investment activity to pick up in the second half of the year, with a full-year transaction volume of US$12.8 billion, which is a 5% increase from 2024 figures. Ercan predicts that private equity funds, family offices, and regional operators who have access to private capital will be the most active buyers as they capitalize on assets that require operational expertise to maximize value.
In Singapore, the full-year hotel transaction volume is expected to reach US$1.2 billion. JLL notes that investors in the city-state are mainly interested in two types of hotels: hybrid hotels with extended stay components that attract private equity investments, and luxury boutique hotels that appeal to HNWIs. The senior vice president for investment sales at JLL Hotels & Hospitality Group, Singapore, Tan Ling Wei, also adds that boutique hotels in Singapore are attracting private capital due to their unique guest experiences and integration into the city’s cultural fabric.
Finally, JLL notes that the Park Hyatt Kuala Lumpur recently opened at Merdeka 118, the tallest skyscraper in the Asia Pacific region. This freehold hotel is located on Lorong 8 Geylang and is currently for sale at $23.5 million. Additionally, the United House has been relaunched for its third collective sale tender at $166 million, and it is predicted that this will receive a lot of interest from potential buyers.
