Asia-Pacific Hotel Investment Down 23% in H1 2025, But Thailand is a Standout
Hotel transaction volumes across the region have declined amidst global economic uncertainty, but Thailand's market remains highly liquid and is on track for a robust recovery by year-end
- Hotel investment in the Asia-Pacific region dropped by 23% to $4.7 billion in the first half of 2025, attributed to global economic uncertainty and a gap between buyer and seller price expectations.
- Thailand was a standout performer, attracting $301 million in investment, with projections suggesting the total could reach $650 million by the end of the year, driven largely by domestic investors.
- Despite the first-half slowdown, the full-year forecast for the region is positive, with investment expected to rise by approximately 5% over the previous year, fueled by a recovery in tourism.
The Asia-Pacific hotel investment market saw transaction volumes fall to $4.7 billion in the first half of 2025, a decrease of approximately 23% compared to the same period last year, according to a report by real estate consultancy JLL.
This decline reflects a more cautious approach to investment amidst heightened global macroeconomic and policy uncertainty.
Japan led the region with the highest transaction value at $1,500 million, followed by China ($744 million), Australia ($664 million), Singapore ($546 million), and South Korea ($504 million).
Together, these five markets accounted for over 84% of all deals in the region.
Thailand, however, stood out with an investment value of $301 million (approximately 9,800 million baht), driven primarily by domestic investors.
JLL projects that investment in the country is set to increase, potentially reaching $650 million by the end of the year.
JLL analysts attributed the slowdown to a widening gap between the price expectations of buyers and sellers.
While sellers have held firm on their asking prices, buyers have extended their due diligence periods.
Nonetheless, the report highlighted a general recovery in confidence across the hotel sector.
New investor groups, including private equity firms and high-net-worth individuals (HNWIs), are becoming more active.
Capital from HNWIs, in particular, saw a significant increase of 54% year-on-year in the first six months of the year.
Pimpanga Yomchinda, JLL’s Executive Vice President of Investment Sales for Asia-Pacific, commented that the Thai market remains highly liquid and attractive, with Bangkok continuing to lead the way with the largest deals.
Nihat Erkan, JLL’s CEO of Hotel Investment Services, noted that the second half of 2025 will be a critical period for strategic investors and private funds.
Ongoing deals are expected to boost the full-year regional investment total to approximately $12,800 million, an increase of around 5% from the previous year.
The long-term outlook for the sector remains positive, fuelled by the continued recovery in regional tourism. Foreign tourist arrivals in the first quarter of this year increased by 12%, pushing average revenue per room and occupancy rates in key city centres to near or above pre-COVID-19 levels.
Despite a decline of more than 6% in foreign tourist numbers in Bangkok during the first seven months of the year, the city's average daily room rate hit a new record high, underscoring the enduring potential of the Thai hotel market to attract investment.
