Apac Hotel Investment Volume Falls 23 Y O Y 1H2025 Jll
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The Asia Pacific (Apac) hotel industry saw a decline in investments during the first half of 2025, due to global economic uncertainties leading to a more cautious investment climate. According to research conducted by JLL, the total value of hotel deals in the region amounted to US$4.7 billion ($6 billion), which is a 23% drop compared to the same period in the previous year.
Nihat Ercan, CEO of JLL Hotels & Hospitality Group for Apac, explains, “Following a strong performance in the previous year, the decrease in investment activity indicates a more prudent investment market, where there is a realignment of capital sources in the hotel investment landscape.” JLL’s report reveals that investors were more selective in the first half of 2025, focusing on well-established hospitality markets in the region. In fact, 84% of hotel transactions during this period took place in just five countries. Japan topped the list with US$1.5 billion in hotel investments, followed by Greater China with US$744 million, Australia with US$664 million, Singapore with US$546 million, and South Korea with US$504 million.
However, there has been a widening gap between the price expectations of sellers and buyers, leading to a decline in investment volume. This has resulted in extended due diligence periods on both sides, further contributing to the decrease in activity during the first half of 2025. Despite this, there are still bright spots in the market. Ercan says, “In our interactions, although institutional investors remain selective, private capital is moving decisively to secure prime hospitality assets that offer both defensive income characteristics and growth potential, which should ensure an uptick in activity in this year and into next.”
JLL’s report also shows that private equity firms have increased their investments in hospitality assets by 6% year-on-year (y-o-y). In addition, there has been a 54% surge in capital invested by high-net-worth individuals (HNWIs) into hotels during the first half of 2025. Looking ahead, JLL predicts that investment activity will pick up in the second half of the year, resulting in a full-year transaction volume of US$12.8 billion, a 5% increase from 2024 figures. Ercan adds, “We expect private equity funds, family offices, and regional operators with access to private capital to be the most active buyers for the remainder of the year, as they capitalize on assets that require operational expertise to maximize value.”
In Singapore, JLL predicts a total hotel transaction volume of US$1.2 billion for the full year. The report also reveals that investor preferences in the city-state can be divided into two categories: hybrid hotels with extended stay components that attract private equity investments, and luxury boutique hotels that appeal to HNWIs. Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group, Singapore, says, “Singapore’s boutique hotel sector continues to attract private capital seeking both diversification and long-term capital value.” Tan also notes that there is a strong demand for heritage hotels and other properties that offer authentic guest experiences and are integrated into the city’s cultural fabric.