APAC hotel investments to increase by 4.3% to $12.2b for full-year 2024

Transaction volumes already hit over $9b in the first nine months of the year.

Asia Pacific hotel investments will total $12.2 billion for the full year 2024 as an influx of investment activity, a more favourable interest rate environment and generally supportive macro and microeconomic developments will positively impact sentiment in the sector regionally. 

According to analysis by JLL, full year Asia Pacific hotel investment volumes in 2024 are anticipated to grow by 4.3% on 2023, which totalled $11.7 billion.   

In the first nine months of 2024, cumulative transaction volumes totalled $9.05 billion, tracking up 15% year-on-year ($7.87 billion in 2023) and representing 90% of the volume of 2019. Led by Japan, cross-border investment surged in YTD Sep 2024 driven by large transactions in Asia, while Australia experienced a rare lull in annual activity.

“A combination of broader economic factors, including a positive macroeconomic outlook regionally, supportive interest rate policies and solid consumption factors give us confidence that full year hotel investment will comfortably eclipse last year. Investors have consistently shown an appetite to play larger in the hotel sector in Asia Pacific and we see no signs that activity will wane in the last quarter of 2024, making us increase our investment volume forecast to $12.2 billion,” says Nihat Ercan, CEO, JLL Hotels & Hospitality Group, Asia Pacific.

JLL analysis confirms that average daily rates (ADRs) in Asia Pacific are up 19% in local currencies versus the last cyclical peak in 2018-2019. Furthermore, most markets still have room to increase occupancy back to the same pre-pandemic highs given strong business travel offsetting some pull back in leisure travel. Concurrently, JLL believes that the last leg of occupancy may take longer to come back with MICE still slower to return and Mainland China still facing lingering economic issues in the short-term influencing overall industry performance.