CBRE’s latest 2025 Asia Pacific Hotel Investor Intentions Survey reveals that over 72% of investors plan to increase their hotel investment allocations in the Asia Pacific region. This surge in interest is largely attributed to the rebound in tourist arrivals, particularly in Japan, Singapore, and Australia, amidst a limited supply of hotel assets.
Tokyo has emerged as the leading city for hotel investment, followed by Sydney, with Seoul and Bangkok tied for third place. Singapore and Osaka both rank fifth. Steve Carroll, Head of Hotels, Capital Markets, Asia Pacific at CBRE, noted, “After performing strongly over the past 18 months, investors anticipate hotel and living assets in Asia Pacific to have the most optimistic pricing expectations in 2025.”
Key findings from the survey indicate a shift in investor interest from the luxury sector to the upscale and upper midscale segments. Investors are also exploring value-add strategies, such as rebranding and redevelopment, due to high new development costs. Despite robust investment activity, high-quality hotel assets in prime locations remain highly sought after.
Investors are cautious about committing to significant investments outside Japan, awaiting more certainty on future interest rate cuts. However, expectations of increased outbound visitors from mainland China and growing institutional investor interest are expected to mitigate some current challenges.
The survey underscores the continued appeal of the Asia Pacific hotel market, driven by strong international arrivals and income growth for hotel operators. As the region’s tourism sector recovers, investors are poised to capitalise on emerging opportunities.
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