Hotel Deals in Asia Pacific Fell Hard, but JLL Predicts a Fast Bounce Back


Skift Take

Hotel investment in Asia Pacific slowed sharply in the first half of 2025, but the pullback looks temporary. Lifestyle hotels, fueled by demand for design and experience, are positioned to drive the rebound.

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Hotel investment in Asia Pacific dropped 23% in the first half of 2025, for a total of $4.7 billion, according to JLL. But the firm said the slowdown reflects timing more than demand, and it still expects a record finish by year’s end.

“The decrease that we’ve seen is a moderation in investment activity that we’ve observed on the back of a very, very strong year of investment activity in 2024,” said Nihat Ercan, CEO of JLL’s Hotels and Hospitality Group for Asia Pacific.

Here’s are some highlights from the first half of the year and what to expect:

Most of the investment was concentrated in Japan, Greater China, Australia, Singapore, and South Korea. Together, these five countries made up 84% of the total activity. Japan, usually the region’s most active market, saw fewer large portfolio and mega-deals in the first half of the year, while distressed sales in China also slowed. Private equity firms increased their capital allocations