Hotel Investment Highlights Asia Pacific – 2H 2024
Fed up (or down)?
Asia Pacific's hotel investment market is showing remarkable resilience and growth, with JLL forecasting a record $12.2 billion in hotel transactions for 2024. This optimistic outlook is driven by several key factors, including the continued strong performance of the Japan market, which is expected to reach $4.7 billion in total hotel investment volume.
The report highlights a positive trajectory across the region, with markets such as India, South Korea, and Thailand recording high annual growth. Investor sentiment remains strong, particularly in Japan, where factors such as a positive spread over borrowing, robust tourism fundamentals, and a weak yen continue to attract both domestic and global capital.
Cross-border investment has surged in 2024, representing more than a quarter of the total transaction volume. This increase is partly attributed to fluctuating currency exchange rates against the dollar and the strong recovery in tourism fundamentals since the reopening of borders to international travel.
The hotel sector is benefiting from substantially higher average daily rates (ADRs) coming out of the pandemic, with rates up 19% on average in local currencies compared to the last cyclical peak in 2018-2019. While occupancy rates are still recovering in some markets, the overall trend is positive, supported by the return of international visitors and the relaxation of visa restrictions in key markets.
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