Hotel Investments in Asia-Pacific Jump 50% to $12 Billion

Hotel investment volume in the Asia-Pacific region reached $12 billion in the first nine months of 2026, a 50% increase from the same period in 2025, according to a report by real estate firm JLL.

JLL stated in its report "Asia-Pacific Hotel Investment Highlights H2 2026" that the region is on track to record $15 billion for the full year, up from its previous forecast of $13.3 billion. It added that the performance recorded so far is the strongest since 2019.

The report noted that 58% of investors expect capitalization rates to expand, and that capital is moving toward regional cities, refurbishing existing hotels, and converting some assets into residential properties, rather than being limited to major deals in capital cities.

The report said the Asia Pacific hotel investment market "has clearly entered a new phase of maturity and conviction," with investors staying in the market in 2026, reflected in the $12 billion volume in the first three quarters, 50% above last year. It added that capital is now "more discerning," and that buyers are putting conviction where consensus has yet to form.

What do these terms mean?

Capitalization Rate: The ratio of a property's net annual income to its price, used to measure real estate investment yield and compare properties with one another.

Refurbishment: Updating an existing hotel or changing its classification to raise its value or increase its revenues without constructing a new project.

Asset Conversion: Changing the use of a building from a hotel or office to residential, a trend followed by investors to improve returns.