APAC 2025 luxury hotel deals reach near pre-pandemic highs at US$2.1b

This represents a 77% surge from 2017.

Luxury hotel investment in Asia Pacific has surged over the past eight years, with transaction volumes rising 77% from 2017 levels to reach approximately US$2.1 billion in 2025, according to JLL.

The consultancy said 2025 marked one of the strongest years for luxury hotel investment since before the pandemic, approaching the more than US$2.4 billion recorded in 2019. Luxury assets accounted for almost 20% of all hotel transactions in 2025, more than double the 8% share seen in 2017 and above the 16% recorded during the pre-pandemic peak.

JLL said the sector's recovery has been driven by growing wealth creation, evolving consumer preferences and sustained demand from affluent travellers. Investor interest has broadened to include private wealth and cross-border capital seeking assets that offer prestige, capital preservation and long-term growth potential.

"The luxury hotel segment in Asia Pacific is experiencing a defining moment," said Xander Nijnens, Head of Advisory and Asset Management, Asia Pacific, JLL Hotels & Hospitality Group. "We're seeing sustained appetite from an increasingly diverse investor base seeking exposure to assets that combine prestige, capital preservation, and long-term growth fundamentals."

JLL noted that luxury hotels are increasingly narrowing the occupancy gap with mainstream hotels, signalling stronger year-round demand and more resilient operating performance. At the same time, supply growth has remained disciplined, expanding at an average rate of 4% annually over the past decade and maintaining around 8% of the region's total hotel inventory.

The firm also highlighted growing brand diversification within the luxury and ultra-luxury segments, with operators introducing wellness-focused and culturally immersive concepts to capture changing traveller preferences.

According to Marina Bracciani, Vice President and Hotels Research Lead for Asia Pacific at JLL, moderating future supply growth is expected to strengthen owners' pricing power. Despite operating costs that are nearly double those of the broader hotel market, luxury properties continue to generate profit margins comparable to the wider sector due to their ability to command premium room rates.

JLL said performance varies across the region, with luxury hotels in Tokyo, Hong Kong and Seoul among the strongest performers, while the ultra-luxury segment has outperformed the broader luxury category.