Asia Pacific Hotel Investment Gains Momentum on Strong Fundamentals: CBRE

Asia Pacific – September 24, 2026 – Investor appetite for Asia Pacific hotels continued to strengthen in the first half of 2026, with investment activity reaching US$8 billion, up 21% year-over-year, according to CBRE’s 2026 Asia Pacific Hotels & Hospitality Performance & Outlook Report.

Japan, Mainland China, and Korea led activity during the first half of the year. Mainland China’s hotel investment market recorded one of the region’s strongest rebounds, with transaction volume more than doubling year-over-year, supported in part by the extension of China Real Estate Investment Trust (C-REIT) eligibility to four-star-and-above hotel assets. Japan continued to attract both domestic and cross-border capital, while Korea benefited from strong hotel operating fundamentals and growing international visitor demand.

“Hotels have become one of the most compelling real estate investment sectors in Asia Pacific,” said Steve Carroll, Head of Hotels & Hospitality, Asia Pacific for CBRE. “Strong travel demand and limited new supply are supporting both operating performance and asset values. While higher borrowing costs may moderate investment activity in some markets during the second half of the year, investor interest remains concentrated in markets with strong growth and positive supply-demand fundamentals.”

The investment momentum reflects improved hotel operating fundamentals across the region. Average Daily Rates (ADRs) are now at or near historical highs in most Asia Pacific markets. Revenue per Available Room (RevPAR) continues to increase across most markets, driven primarily by ADR growth.

Occupancy remains below pre-pandemic levels in much of the region as operators prioritise rate growth over occupancy gains. However, Korea and Vietnam have emerged as notable outperformers, with both markets surpassing pre-pandemic occupancy levels amid strong travel demand.

Tourism activity across Asia Pacific continues to recover despite disruptions to certain long-haul flight routes arising from the Middle East conflict. Korea and Vietnam have been among the region’s strongest-performing tourism markets, benefiting from growing visitor arrivals from within Asia Pacific and Europe. Korea’s global cultural influence through K-pop, K-drama and medical tourism continues to attract a broader mix of international travellers, while Vietnam has strengthened its position as a competitive leisure destination.

Limited new supply remains a defining feature of the Asia Pacific hotel market. Elevated construction costs continue to constrain development activity across many markets, while hotel supply, excluding Mainland China, is expected to grow by only about 1% annually between 2025 and 2029. Mainland China remains the region’s largest source of future hotel supply, accounting for nearly half of all projected new additions.

Against this backdrop, investors are pursuing value-add opportunities through asset repositioning and adaptive reuse strategies. The trend is particularly evident in Hong Kong SAR, where hotels are being acquired for conversion into student accommodation and other uses in the living sector.

“New hotel development remains challenging across much of Asia Pacific due to elevated construction and financing costs,” said Ada Choi, Head of Research, Asia Pacific, for CBRE. “As a result, investors are looking to unlock value through repositioning and conversion strategies rather than ground-up development. With new supply expected to remain limited in many markets, existing hotel assets are well positioned to benefit from sustained demand growth and improving operating performance.”

To read the full report, click here.

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