APAC hotel investment volumes to reach over USD13 billion in 2026

Singapore remains a resilient safe haven market.

Asia Pacific hotel investment is set to regain momentum in 2026, supported by resilient travel demand and growing investor confidence across the region.

JLL forecasts hotel investment volumes in the Asia Pacific region to reach USD 13.3 billion (SGD 17.3 billion) in 2026, marking an increase from a revised estimate of USD 11.9 billion (SGD 15.5 billion) for 2025. This renewed activity comes despite ongoing global macroeconomic and geopolitical headwinds, underscoring the underlying strengths of the region’s hospitality sector.

"A challenging economic environment and uncertainty in geopolitical spheres is influencing both investment decisions and travel habits. As a result, the Asia Pacific hospitality investment landscape is reflective of a maturing market, where quality and operational fundamentals increasingly drive capital allocation decisions," said Nihat Ercan, CEO, JLL’s Hotels & Hospitality Group, Asia Pacific. "While transaction volumes remain below historical peaks, the underlying tourism recovery story provides compelling support for long-term asset values.”

Here’s more from JLL:

Singapore’s hotel investment market has demonstrated extraordinary momentum in 2025, with JLL receiving over SGD 3.5 billion in bids for hospitality assets as of early December. This bidding activity signals strong institutional and private investor appetite.

This wave of bidding activity is notable for the diversity of participants. Buyer profiles span high-net-worth individuals seeking trophy assets, family offices pursuing long-term generational wealth strategies, experienced owner-operators expanding their portfolios, and private equity firms targeting value-add opportunities. This depth and breadth showcase Singapore’s broad, sustained appeal across investment strategies and risk appetites.

Two fundamental factors have powered this surge. Firstly, Singapore’s continued reputation as a safe haven for global capital, especially in times of broader uncertainty, and secondly, the benefits of declining interest rates, most pronounced in the second half of 2025. Lower borrowing costs enhanced acquisition economics, while the city-state’s well-established track record further strengthened buyer confidence in sustainable returns.

Given the current pace of bidding and the expectation that some deals will spill into the new year, JLL projects that transaction activity will remain stable in 2026, with approximately SGD 1.3 billion in hotel investment volume anticipated for Singapore.

Investors are increasingly focused on hybrid hotels, boutique luxury concepts, and alternative hospitality formats such as serviced residences. Leasehold hotel assets are gaining attention as yield spreads over freehold properties become more attractive. Broader buyer interest has helped sustain market activity, although, in line with the regional trends, transaction timelines have lengthened as investors adopt a more selective and cautious approach.

Singapore’s tourism landscape remains supported by strong international arrivals and its position as a regional travel hub. Global investors continue to target landmark assets, while the city’s stable legal framework and well-established hotel offering underpin long-term demand. As capital continues to gravitate towards quality assets in core locations, Singapore is expected to remain a major beneficiary of both regional and cross-border investor flows.

Looking ahead, safe-haven markets such as Singapore, Japan, and Australia are expected to drive Asia Pacific hotel investment activity in 2026, as buyers continue to focus on liquidity, market transparency, and resilient operational performance. For Singapore, the outlook remains one of stability and selective growth, with investors primed to take advantage of opportunities in both premium and value-add segments of the market.

“This year’s record bidding activity underscores Singapore’s enduring status as a premier hotel investment destination. Not only does the breadth of investor interest, from family offices to private equity, highlight the sector’s robust appeal, but this diversity also signals a strong foundation for future growth. As we move into 2026, we expect Singapore’s safe-haven reputation and supportive market dynamics to continue attracting purposeful capital, with buyers ready to move decisively when opportunities arise,” said Tan Ling Wei, Senior Vice President, Investment Sales, JLL Hotels & Hospitality Group, Singapore.

Across the wider region, strong tourism fundamentals and favourable demand patterns are expected to underpin continued investment into leading hotel markets. With institutional buyers and private capital expected to increase allocations, both Asia Pacific and Singapore are well positioned to capture renewed global investor interest in 2026.