Investment in hotel properties in the Asia Pacific region accelerated in the first half of 2026. Resilient travel demand, rising room rates, and a shrinking development pipeline bolstered the sector's attractiveness for investors, as reported by CBRE.
Robust Fundamentals and Investor Trends
Hotel investments in the region reached a volume of USD 5.5 billion in the first six months of 2026. This represents a 17% increase year-on-year and a 24% rise compared to the same period in 2019. The region also recorded stable revenue per available room (RevPAR) growth, with many markets surpassing 2019 levels. Tokyo and Singapore notably stood out, achieving RevPAR growth of 36% and 32% respectively in May 2026 compared to May 2019.
The limited new construction projects in several key cities, including Singapore, Tokyo, Shanghai, and Seoul, have a beneficial effect on existing properties. This scarcity increases the operating performance of hotels and enhances their appeal to buyers. The volume for large transactions exceeding USD 100 million reached USD 3.5 billion in the first half of the year, accounting for 64% of the total volume.
Foreign investors contributed significantly to this growth, representing 41% of the transaction volume. This corresponds to a 24% increase year-on-year. Notable international transactions during this period include the sale of the Hilton Osaka in Japan, the Swissôtel The Stamford and Fairmont Singapore, and the Ibis Budget Sydney Airport in Australia.
Outlook and Market Perspectives
Tatsuro Nagamatsu, Head of the Hotel Investment Properties Team at CBRE, noted that macroeconomic conditions in the Asia Pacific region are more stable compared to other parts of the world. He emphasised that the sector in Australia, Japan, and Southeast Asia benefits from fundamental growth drivers.
Chau Nguyen, Head of Hotel Market Research at CBRE Asia Pacific, commented positively: “Solid demand and rising hotel room prices solidify investor confidence. Although interest costs continue to play a role, the outlook for hotel investments in the region remains favourable.”
- —Hotel investment in the Asia Pacific region rose by 17% to USD 5.5 billion in the first half of 2026.
- —Tokyo and Singapore recorded RevPAR growth of 36% and 32% respectively in May 2026 compared to May 2019.
- —Foreign investors accounted for 41% of the transaction volume, a 24% increase year-on-year.
- —The limited pipeline of new projects in key markets such as Singapore and Tokyo supports the operating performance of existing hotels.
