Despite global uncertainty, strong travel demand and sustained investor interest will ensure stability of capital volumes into hotel assets.
Asia Pacific hotel investment market will increase in 2026 as strong travel demand and changing tourism habits will offset global economic volatility and uncertainty. According to JLL (NYSE: JLL), investment volumes in 2026 will total approximately USD 13.3 billion, representing an uptick from the revised 2025 forecast of USD 11.9 billion.
JLL's forecast underscores a market characterized 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.
JLL's analysis has identified Japan, Singapore, and Australia remaining highly sought-after destinations in the latter parts of 2025 and into 2026, particularly among private wealth investors targeting landmark assets. Elsewhere, the firm sees opportunities in markets such as Vietnam that is gaining significant traction as an emerging opportunity.
Thailand remains a popular destination among domestic and select international investors, particularly those from Southeast Asia who often look regionally across all markets. Albeit naturally comprising smaller deals, the country's hotel investment market is likely to remain a consistent contributor to the region, with the investment volumes expected to total USD 80.4 million (THB 26.0 billion) and normalising to USD 40.2 million (THB13 billion) in 2025 and 2026 respectively.
" Economic challenges and uncertainty in geopolitical spheres are influencing both investment decisions and travel habits. As a result, the Asia Pacific hospitality investment landscape is reflective of a maturing market where quality and operational fundamentals increasingly drive capital allocation decisions," said
Nihat Ercan, CEO, JLL's Hotels & Hospitality Group, Asia Pacific.
Market fundamentals remain robust, with UN Tourism forecasting 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.
Thailand, on the other hand, experienced a decrease of 8% in international visitor arrivals as of year-to-date September 2025 compared to last year. This is driven by a significant 35% drop year-on-year in Chinese arrivals, representing only 40% of pre-pandemic level. Other source markets have however increased from last year, including India (+15% year-on-year), UK (+14% year-on-year), and Russia (+10% year-on-year).
Revenue performance metrics further validate a hypothesis of investment stability in 2026. Asia Pacific's hotel industry has deliverable a respectable 2% growth in revenue per available room (RevPAR) year-to-date September 2025. On the other hand, Thailand's hotels recorded a -4% year-on-year decline in RevPAR as of year-to-date September 2025, largely due to a drop in occupancy as tourists explore to other markets in the subregion, particularly Vietnam.
Despite declining international tourist arrivals and RevPAR, Thailand's year-to-date September transaction volume rose to USD 642 million (THB20.8 billion) from USD 524 million (THB 17.0 billion) during the same period last year, supported by pre-committed deals delayed from late 2024. This stacks up well historically and is well above the 10-year average of USD 388 million (THB 12.5 billion).
Pimpanga Yomchinda, Executive Vice President for Investment Sales, Asia Pacific at JLL, said "Our findings show that the majority of transactions in Thailand year-to-date September 2025 have been driven by domestic buyers, or 69.5% of total volume, followed by Asian investors. In addition, several large value-add deals have been recorded since the beginning of the year, particularly in Bangkok."
JLL's study reveals a significant trend in Thailand's hotel investment market toward leasehold transactions. Of the total hotel investment volume recorded YTD September 2025, 19.7% (approximately USD 127 million or THB 4.1 billion) were from deals involving leasehold titles. This shift is particularly pronounced in Bangkok where high land prices are driving interest, though leasehold opportunities are expanding beyond the capital. These leasehold transactions are exclusively undertaken by publicly listed developers with clear exit strategies.
"The market dynamics have fundamentally changed. Investors are no longer limiting themselves to freehold properties and are embracing leasehold opportunities as a viable investment strategy," Pimpanga observed.
For Asia Pacific, JLL's revised 2025 transaction volume forecast of USD 11.9 billion reflects the impact of prolonged transaction timelines and enhanced due diligence requirements amid ongoing geopolitical uncertainty. Liquidity is expected to remain concentrated in five core markets -- Japan, Australia, Greater China, Singapore, and South Korea -- which continue to attract the majority of institutional capital flows.
"Despite near-term headwinds, the structural drivers supporting Asia Pacific hospitality investment remain intact," said Ercan. "Volatility can't be ignored but the region's growing middle class, strategic geographic positioning, and improving tourism infrastructure create compelling long-term growth prospects that sophisticated institutional investors recognize and are positioning to capture."
Read more here. https://www.jll.com/en-sea/insights/market-perspectives/asia-pacific-hotel-investment