Hotel investment in Asia Pacific is projected to grow by 4.3% in 2024, reaching $12.2 billion, according to JLL's latest report. The increase is attributed to a favorable interest rate environment and strong economic fundamentals across the region. This growth follows a total of $11.7 billion in hotel investments in 2023.
Hong Kong remains an active market but with more selective investment, focusing on prime city-center hotels. Despite a forecasted 35% drop in 2024 investment, JLL expects stronger activity in 2025, as tourism picks up and a new policy encourages hotel-to-student-accommodation conversions, potentially revitalizing the market.
For the first three quarters of 2024, hotel investment volumes reached $9.05 billion, a 15% year-on-year increase. Japan continues to dominate, with a forecasted total of $4.7 billion in transactions for 2024. Meanwhile, mainland China’s investment volumes have risen by 6.4%, with strong activity in Shanghai and Beijing.
Australia’s hotel investment market has seen a slowdown, with volumes dropping 38% from the previous year. However, other countries such as Singapore and Thailand have experienced strong recoveries in hotel transaction volumes, driven by strong tourism performance and investor confidence.
JLL forecasts continued growth in hotel investment across Asia Pacific, with regions such as India, Korea, and Thailand seeing notable increases in activity. The hotel sector’s resilience is attributed to high occupancy rates, growing tourism, and supportive macroeconomic conditions, making it an attractive market for both domestic and international investors.