According to CBRE‘s 2026 Asia Pacific Hotels & Hospitality Performance & Outlook Report, Japan, mainland China and Korea led hotel investment activity in the first half of 2026. Resilient domestic and regional travel demand supported the recovery in Asia-Pacific tourism and hotel investment activity.
Average daily rates were at or near historical highs in most Asia-Pacific markets, while revenue per available room increased across most markets.
What does the deal flow mean for investors?
JLL expects Asia-Pacific hotel investment volumes to exceed US$13.3 billion in 2026. That implies a marked acceleration in the second half. However, financing costs remain a consideration. Higher borrowing costs could moderate momentum, particularly for leveraged acquisitions. Buyers must weigh debt-service pressure against revenue upside before committing.
The market is not uniform. That diversification appeals to investors seeking downside protection.
Supply pipeline signals sustained developer confidence
Lodging Econometrics data show 2,506 projects totalling 452,972 rooms in the Asia-Pacific construction pipeline, excluding China, at the close of the second quarter of 2026. Yet pipeline size does not equal immediate supply.
That lag matters for investors. New supply entering the market in 2028 or 2029 will face a different demand and rate environment. Buyers today must model both the near-term revenue opportunity and the longer-term competitive landscape.
Site selection remains critical. Transport links, local demand depth, construction costs and operator quality all shape returns.
Investors and asset managers should monitor second-half transaction volumes closely.
Quick answers
Asia-Pacific hotel investment reached US$8 billion in H1 2026, a 21 per cent increase year on year, according to CBRE’s 2026 Hotels and Hospitality Performance and Outlook Report.
Japan, mainland China and South Korea led regional hotel investment activity in the first half of 2026, driven by strong travel demand and limited new supply.
JLL forecasts Asia-Pacific hotel investment volumes will exceed US$13.3 billion for the full year 2026, implying a significant acceleration in deal activity during the second half.
