Over 7 in 10 hotel investors eye growing their portfolio in APAC this year

Tokyo remains the top city for hotel investment.

According to CBRE’s 2025 Asia Pacific Hotel Investor Intentions Survey, over 72% of investors plan to increase their hotel investment allocations in Asia Pacific.

Rebound in tourist arrivals, particularly in Japan, Singapore and Australia, sparks investor interest in hotel assets amid limited supply in the region. Tokyo leads as the top city for hotel investment, followed by Sydney, with Seoul and Bangkok tied for third, and Singapore and Osaka both in fifth place.

“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. The boost in international arrivals from key markets has pushed up APAC hotel room rates, ensuring a continuation of the income growth hotel operators achieved last year,” Steve Carroll, Head of Hotels, Capital Markets, Asia Pacific, CBRE.

Other key findings include:

• After a period of strong investor activity in the luxury sector, some of that interest has shifted toward the upscale and upper midscale segment.
• Investors are looking more closely at value-add strategies, with rebranding and redevelopment opportunities in this segment seen as attractive in the current market at a time when the cost of new development remains high.
• While investment activity is expected to stay robust, well-located high-quality hotel assets in key markets will remain keenly sought after.
• Investors are awaiting greater certainty on the magnitude of future interest rate cuts before committing to significant investment decisions outside of Japan.
• Expectations of continued growth in mainland Chinese outbound visitors, further room for occupancy improvement, and increasing institutional investor interest should help counteract some of the current headwinds.
• Tokyo remains the top city for hotel investment, followed by Sydney second, with Seoul and Bangkok tied for third, and Singapore and Osaka both in fifth place.