Asia-Pacific Hotel Investment Rises as Travel Demand Grows and New Supply Remains Limited
The hotel investment market in the Asia-Pacific region increased in the first half of 2026 as investors were attracted by stronger travel demand and limited new supply. CBRE’s report revealed that the hotel investments totaled US$8 billion in the first half of 2026, a 21% increase year-over-year.
Japan, mainland China and South Korea were key sources of investment, with significant funds directed toward tourism and hospitality projects. Increased air travel and limited hotel supply also supported the performance of hotel assets across the region. The Asia-Pacific hotel investment market has continued to benefit from the recovery in international travel.
Hotel performance also improved across the region, with average daily rates reaching record levels in a number of markets. Revenue per available room increased mainly as a result of higher room rates. While occupancy remains below pre-pandemic levels in some markets, South Korea and Vietnam have exceeded pre-pandemic occupancy levels as international visitor demand continues to grow.
Limited new supply is also supporting the market. CBRE expects hotel supply outside mainland China to grow by about 1% annually between 2025 and 2029, as construction and financing costs remain high. Mainland China is expected to account for nearly half of the region’s new hotel supply.
The limited supply is encouraging investors to consider existing hotels through asset recycling, repositioning and redevelopment. In Hong Kong, some hotel properties are being considered for conversion into student accommodation and other living-sector uses. As investors search for opportunities in markets where there is still limited new hotel development, these options are drawing more investor attention.
However, according to CBRE, higher borrowing costs might slow down investment activity in some Asia-Pacific markets during the second half of 2026. Despite this, travel demand, limited hotel supply and improving hotel performance continue to support the region’s hotel investment market.
