Capital flows into Asia-Pacific hotels as Thai acquisitions surge to 20 billion baht

By mid-2025, the global real estate sector continued to navigate an atmosphere clouded by macroeconomic uncertainty, volatile interest rates and shifting regional politics. While some markets slowed, major investors accelerated their search for assets capable of generating stable income and long-term growth.

Among the most closely watched assets are hotels, particularly in the Asia-Pacific region. According to JLL, a leading global commercial real estate and investment management company, hotel transaction volumes in the region reached US$4.7 billion (around 152.75 billion baht) in the first half of 2025, a 23% decline from the previous year. Yet within this figure lies evidence of shifting investment dynamics.

Nihat Ercan, CEO of JLL Hotels & Hospitality Group, Asia-Pacific, observed: “The slowdown in volumes after last year’s surge reflects investor caution, but also signals a transfer of ownership from institutions to private investors who are pressing ahead decisively.”

Japan leads while Thailand emerges as a rising secondary market

Japan (US$1.5 billion), China (US$744 million) and Australia (US$664 million) remain the top markets, underscoring investor confidence in their stability and long-term potential.

However, secondary markets are beginning to make waves. Thailand is a case in point: hotel transactions in the first half of 2025 totalled US$301 million, with full-year deals expected to reach US$650 million (over 20 billion baht), cementing the country’s growing appeal to investors.

Bangkok remains a magnet 

Pimpanga Yomchinda, executive vice president for investment sales, Asia-Pacific at JLL, noted that Thailand’s hotel market continues to display strong liquidity, with Bangkok attracting the largest inflows. “The city’s ability to draw capital reflects its standing as both a tourism hub and a business centre,” she said.

What is even more striking is the shift in market players. Once dominated by institutional investors, the landscape is now increasingly driven by high-net-worth individuals (HNWIs), who are proving more agile and active in seizing opportunities.

JLL data shows that HNWI investment in hotels jumped 54% compared with the same period last year. These investors are not treating hotels simply as safe-haven assets, but as platforms for growth and value creation through active management.

“It is no longer just about buying, it is about building value,” JLL analysts observed.

This approach has made private equity firms, family offices and regional hotel owners central players in the next phase of the market, as they target quality properties with strong potential and apply hands-on strategies to enhance returns.

Recovery uneven but certain

Hotel performance across Asia-Pacific is rebounding at different speeds. Tokyo’s occupancy rates now exceed 80%, while Sydney remains resilient. Yet Bangkok stands out as the most intriguing case: despite a 6.3% drop in tourist arrivals during the first seven months of the year, the city’s average daily room rates reached a record high.

The combination of recovering travel demand and operators adapting to new market realities has bolstered investor confidence in the region’s long-term potential, especially in cities where hotels are managed professionally.

Second half momentum: capital set to flow

According to JLL, the latter half of 2025 will provide a golden window for strategic investors, particularly private equity players seeking assets that require repositioning or active management to unlock value. Total hotel investment for the year is expected to reach US$12.8 billion, up 5% from last year.

Short-term volatility, long-term opportunity 

The hotel sector is evolving rather than disappearing. In a world where capital is searching for new havens, well-positioned city hotels are emerging as more than places for travellers to stay—they are becoming safe harbours for money seeking long-term stability.