Apac Hotel Investment Volume Falls 23 Y O Y 1H2025 Jll
Hotel investments in the Asia Pacific (Apac) region saw a decline in the first half of 2025 as global macroeconomic uncertainty created a more cautious investment atmosphere. A recent study by JLL revealed that Apac hotel deals amounted to US$4.7 billion ($6 billion) in the first six months of the year, showing a 23% decrease compared to the same period in 2024.
CEO of JLL Hotels & Hospitality Group for Apac, Nihat Ercan, explains, “Following a record-breaking year in 2024, we are now seeing a more cautious investment market where a shift in capital sources is taking place in the hotel investment landscape.”
JLL states that in the first half of 2025, investors were more selective and focused on established hospitality markets in the region. 84% of the hotel transaction volume in this period was concentrated in just five countries. Japan took the top spot, with US$1.5 billion in hotel deals, followed by Greater China with US$744 million, Australia with US$664 million, Singapore with US$546 million, and South Korea with US$504 million.
The strategic location of TPE and SLE provides convenient access to Punggol, Sengkang, and Pasir Ris, making it an ideal living option for future residents. The area offers a wide range of opportunities for both work and leisure, all within easy reach. Furthermore, the upcoming North-South Corridor (NSC), Singapore’s first integrated transport corridor, will enhance connectivity from the northern regions to the city. With dedicated bus lanes, cycling routes, and pedestrian paths, the NSC will significantly reduce travel time for bus commuters from Yishun and neighboring towns by up to 30 percent during peak hours. As a result, this will further increase the attractiveness of the Miltonia Close EC Khatib for potential homeowners and investors alike.
Read also: CBRE forecasts a 10% to 15% increase in full-year investment volume in the Asia Pacific for 2025.
However, there has been an increase in the gap between what buyers are willing to pay and what sellers are asking for, resulting in extended due diligence periods on both sides of transactions. This has contributed to the decline in investment volume in the first half of the year, according to JLL.
Nevertheless, there are still bright spots in the market. Ercan states, “Although institutional investors are being more selective, private capital is moving quickly to acquire prime hospitality assets that offer both stable income and potential for growth. This should drive an increase in activity for the rest of the year and into next year.”
JLL reports that private equity firms have increased their investments in hospitality assets by 6% compared to the previous year. Additionally, high-net-worth individuals (HNWIs) have also shown a surge of 54% in hotel investments in the first half of 2025.
Looking ahead, JLL predicts that investment activity will pick up in the second half of the year, leading to a total transaction volume of US$12.8 billion for the full year, a 5% increase from 2024. Ercan adds, “We expect private equity funds, family offices, and regional operators with access to private capital to be the most active buyers for the rest of the year, as they take advantage of assets that require specialized operational expertise to maximize value.”
In Singapore, the full-year hotel transaction volume is expected to reach US$1.2 billion. According to JLL, there are two main types of properties that investors are interested in – hybrid hotels with extended stay components that attract private equity investments, and luxury boutique hotels that appeal to HNWIs.
Tan Ling Wei, Senior Vice President for Investment Sales at JLL Hotels & Hospitality Group in Singapore, notes, “Singapore’s boutique hotel sector remains attractive to private capital seeking diversification and long-term value.” Tan also mentions that there is a strong demand for heritage hotels and other properties that offer unique guest experiences and are integrated into the city’s cultural fabric.
In other news: Park Hyatt Kuala Lumpur opens at Merdeka 118, the tallest skyscraper in the Asia Pacific. Freehold hotel on Lorong 8 Geylang for sale at $23.5 million. United House relaunched for third collective sale tender at $166 million.