Hotel investment activity across Asia-Pacific reached US$8 billion in the first half of 2026, up 21 per cent year on year, as operating performance and limited new supply supported investor demand, according to CBRE.
Japan, China and South Korea led investment activity during the period, according to CBRE’s 2026 Asia Pacific Hotels & Hospitality Performance & Outlook Report.
China recorded one of the region’s largest rebounds, with hotel transaction volume more than doubling year on year, supported in part by the extension of China Real Estate Investment Trust eligibility to hotel assets rated four stars and above.
Japan continued to attract domestic and cross-border capital, while South Korea benefited from hotel operating performance and international visitor demand.
Hotel performance has also improved across the region. Average daily rates are at or near historical highs in most Asia-Pacific markets, while revenue per available room continues to increase across most markets, primarily due to rate growth.
Occupancy remains below pre-pandemic levels in much of the region, although South Korea and Vietnam have surpassed pre-pandemic occupancy levels.
New hotel supply outside China is forecast to grow by about one per cent annually between 2025 and 2029, as construction costs constrain development. China accounts for nearly half of projected new hotel supply in the region.
Investors are also pursuing asset repositioning and adaptive reuse, including hotel conversions into student accommodation and other living-sector uses in Hong Kong.
“Hotels have become one of the most compelling real estate investment sectors in Asia Pacific,” said Steve Carroll, head of hotels & hospitality, Asia-Pacific, CBRE. “Strong travel demand and limited new supply are supporting both operating performance and asset values.”
“New hotel development remains challenging across much of Asia-Pacific due to elevated construction and financing costs,” added Ada Choi, head of research, Asia-Pacific, CBRE. “As a result, investors are looking to unlock value through repositioning and conversion strategies rather than ground-up development.”
The full report is available here.
