APAC Hotel Transactions and Market Snapshot – FY 2024 - H1 2025
- GAS
- 6 days ago
- 21 min read
Updated: 4 days ago
Selected Markets:
Australia
China
Hong Kong
India
Japan
Malaysia
New Zealand
Singapore
South Korea
Taiwan
Thailand
2024 was a year defined by recovery but not resolution.
In 2024, the Asia-Pacific hospitality market continued its post-pandemic rebound. The year that began with high interest rates and concerns about recession ended on an optimistic note, with the APAC hospitality market gaining momentum. RevPAR (Revenue per Available Room) grew in all global regions, including the Asia Pacific countries. However, the region's performance still lags 10% behind 2019 levels. Strong RevPAR results were driven by the normalization of travel trends, increased demand for group and business travel, and notably, rising Average Daily Rates (ADR) in the region.
Average daily rates surged ahead, climbing between 14% and 20% above the highs of 2018-2019. Rooms were commanding premium prices again, reflecting inflation and consumers' willingness to spend, supported by limited hotel supply. This situation has proven essential for offsetting rising operational costs in hospitality, which have not been absorbed by greater occupancy levels.
Looking ahead, there is still room for growth. Occupancy rates are expected to rise as outbound travel from China has not yet recovered to pre-COVID levels, India's outbound travel demand shows strong potential, and business travel continues to increase.
Investors took notice…
In the capital markets, the story unfolded unevenly across global regions. In the Americas, high financing costs and delayed rate cuts led to a 15% decline in investment volumes. Europe surged ahead, driven by early action from the European Central Bank and a successful summer season, with an increase of 36%. In contrast, the APAC region saw a 15% increase in liquidity, fueled by significant cross-border activity from the U.S., as investors capitalised on a strong dollar and robust domestic private capital.
For all hotel deals exceeding USD 20 million, the total transaction volume in the APAC region during 2024 reached USD 11.2 billion, with 139 registered transactions. These transactions represented a total of nearly 29,920 keys traded across the region (Data gathered through MSCI and internal research).
Japan is arguably the most in-demand hotel market in the Asia-Pacific. A weak yen and near-zero interest rates created a unique opportunity. Even as the Bank of Japan raised rates for the first time in 17 years, capital continued to flow in. The fundamentals—compressed cap rates, limited new supply, and global tourist appeal—were too compelling to ignore. In 2024 alone, Japan accounted for over USD 4 billion in hotel transaction volume, nearly 40% of the total for the year.
Must-have assets and top urban cities became the focal points for hotel transactions, especially as the cost to build significantly exceeds the cost to buy, affecting not only new build but also many developing projects. Consequently, there has been massive interest in locations such as Seoul, Singapore, Osaka, and Tokyo, which together accounted for over 37% of the total investment volume in APAC.
Across both regions, one thing became clear: the definition of a hotel is changing. Lifestyle assets, extended-stay hybrids, and co-living formats are no longer fringe ideas; they are now central to deal activity. In APAC, lifestyle hotels are rapidly entering development pipelines. In Europe, branded operators are engaging in mergers and acquisitions to attract younger, experience-focused travellers. Hotels are evolving from mere places to sleep into social anchors, revenue ecosystems, and brand platforms.
In the Asia-Pacific region, strong recovery, increasing RevPAR, the highest recorded ADR levels, and significant potential for growth in occupancy—all amidst rising costs and staffing challenges.
In this report, we will examine hotel transactions from 2024 and the first half of 2025 in detail, understand the market trends, and reveal what’s next for the region.
All prices in this report have been converted to USD, based on the exchange rate applicable at the time the information or deal was executed.
Only transactions exceeding USD 20 million were included in the analysis.
2024 in Numbers
The Asia Pacific hotel investment landscape in 2024 was shaped by renewed liquidity, stronger cross-border capital flows, and selective investor appetite for quality assets. Our data includes only transactions above USD 20 million, providing a focused view on institutional-grade deals across the region.
In total, 139 transactions were recorded in 2024, representing a combined volume of USD 11.2 billion. The average transaction size reached USD 80.5 million, with 29,920 hotel keys changing hands.
When broken down by hotel category, a clear hierarchy of investment priorities emerges:
Hotel Transactions per Star Category: 2024 FY
Luxury and upper-luxury assets captured a disproportionately large share of total volume, meanwhile, the mid to upscale segment remained the most active by volume of deals.
These figures not only reflect the scale of capital moving through the APAC hospitality sector but also offer a window into investor preferences: while luxury dominates value, the midscale segment continues to drive deal flow.
The upscale to luxury segments have represented almost 85% of the total hotel investment in APAC during 2024 During the last 18 months (Jan 2024 – Jun 2025), most of the 3-star and below transactions occurred in Japan, specifically in Osaka (10) and Tokyo (7). The 4-star hotel transactions took place mostly in Seoul (9), Singapore (8) and Hong Kong (7). Meanwhile, the luxury segment saw most deals in Kuala Lumpur (5) and Singapore, Shanghai, and Bangkok (4 each).
Rebranding opportunities, particularly within the lifestyle and experiential segments, are increasingly attractive as operators and investors seek to reposition legacy hotels to meet evolving guest expectations, also driven by high new-build costs.
Across both Asia Pacific and Europe, the emphasis on authentic, design-led, and culturally relevant hospitality experiences has pushed upscale+ assets to the forefront of investor strategy.
The Rise of Lifestyle Hotels in Asia Pacific
The growth of lifestyle hotels across the Asia Pacific region is undeniable, driven by operators seeking a fresh offering to reflect changing consumer preferences and increased disposable wealth. By 2024, the region will see nearly four times the number of lifestyle hotel rooms compared to ten years ago, with a projected 34% growth by 2027. These hotels are moving beyond luxury segments into upper midscale and mid-tier categories, broadening their appeal.
While reported figures vary and there are some discrepancies, some industry sources suggest that lifestyle hotels can outperform traditional hotels in non-room revenue, particularly in F&B and MICE. Perhaps we would have clearer results if the F&B offerings by lifestyle hotels were actually comparable with those of traditional hotels, which is not the case on many occasions. One thing is clear: operational efficiency is key, as these properties tend to achieve multiple revenue touchpoints and foster community engagement and social interaction.
The market is evolving, with over ten new lifestyle brands expected by 2027, mainly targeting younger audiences and rebranding existing properties. Given the need for hotel differentiation and opportunities for premium pricing, lifestyle hotels represent a strong growth potential in a challenging market.
An example of this is the recent announcement (July 2025) that Ace Group International, which manages the Ace Hotel brand, is nearing a deal to sell itself to Seibu Prince Hotels Worldwide Inc., based in Tokyo. This transaction could be valued at as much as USD 85 million.
Quarterly Trends
Hotel transaction activity in Asia Pacific remained steady throughout 2024, with each quarter recording between 32 and 37 deals. While volume was evenly distributed in terms of deal count, the scale, pricing, and capital deployment varied significantly across the year, reflecting shifting investor priorities and asset profiles.
The second quarter stood out as the most capital-intensive period, accounting for the largest share of total annual transaction volume. Q2 not only registered the highest average deal size at over USD 101 million, but also saw the highest average price per key and the largest number of rooms traded.
By contrast, the second half of the year, while consistent in deal count, reflected a decline in the number of keys exchanged per quarter.
Transactions per quarter per star Category (FY 2024 and H1 2025)
Luxury and upper-upscale properties continued to attract growing investor interest throughout 2024, particularly in core urban markets and resort destinations. However, overall transaction activity in these segments shows early signs of deceleration heading into 2025.
While average transaction values fluctuated throughout 2024 and the first half of 2025, they remained relatively stable overall. In contrast, the average price per room showed a consistent upward trend across all hotel categories.
In 2024 Q1, something particular happened: The Average Price per Key on 5-star hotels was 20K below the 4-star average. This happened because all the transactions in the first category were from big hotels located in China and Malaysia, where prices per key are not particularly high.
What’s particularly notable is the decreasing trend in key count per transaction, indicating a shift toward the acquisition of smaller, more targeted assets. This supports the broader narrative of a more selective investment environment, with buyers focusing on repositioning potential and operational efficiency.
The one clear exception occurred in Q1 2025, when total keys traded spiked due to a small cluster of large-scale deals, most notably the Winland 800 Hotel in Hong Kong (800 keys) and Cassia Sokcho Hotel in South Korea (674 keys). These few high-volume transactions temporarily lifted the average but did not reverse the broader trend toward smaller, high-value assets.
Where is the money being spent?
Despite prolonged high interest rates globally, hotel investment in Asia Pacific remained resilient in 2024, underpinned by sustained capital flows into key markets such as Japan, South Korea, China, Singapore, and Australia. The easing of central bank policy rates across the region gave investors renewed confidence to move forward, even amid cautious underwriting. Japan, in particular, stood out — after ending its long-standing negative interest rate policy in March 2024 (from -0.1% to +0.1%), it still maintained one of the lowest interest rate environments in the world, fueling strong transactional momentum.
High ADRs in city markets, limited new supply, and rising construction costs have significantly influenced investment criteria, driving a clear preference for dense urban locations as the primary targets for hotel acquisitions.
Now, let’s check how these trends have evolved in the first half of the year 2025.
South Korea leads the region in H1 2025, signaling strong investor confidence as international arrivals surpass USD 7.7 million by mid-year. The market is positioned for full-cycle recovery, supported by surging inbound tourism, the global appeal of Korean pop culture, strong MICE demand, and limited new luxury supply in Seoul.
Australia follows with solid transaction activity, though most markets remain slightly below pre-pandemic occupancy levels due to elevated hotel supply. However, ADRs continue to outperform, maintaining investment appeal.
The Big Five (FY 2024 and H1 2025)
During the entire 2024 and the first half of 2025, five countries clearly attracted most of the investment across the region, and alone the represent almost 85% of the entire transaction volume in APAC.
Total Volume per Country:
Total Number of Transactions per Country:
Japan
(FY 2024 and H1 2025)
Japan remains the most in-demand hotel market in Asia-Pacific. Between 2024 and the first half of 2025, 56 deals were made, totalling USD 5.26 billion and 14,564 rooms traded.
Japan attracts strong investment due good borrowing conditions (0,1% interest rate), growing tourism and outstanding performance. Sales in major cities are now higher than in 2019, especially in luxury hotels where RevPAR outperforms pre-pandemic levels. Occupancy remains high and ADR has seen growth driven by limited supply, inbound visitors, and Japan’s reputation as a resilient destination.
Urban assets in Tokyo, Osaka, and Fukuoka are especially attractive because of high replacement costs and stable occupancy. Investor confidence is high because of favourable factors like currency arbitrage, liquid markets, rising yet still low interest rates, and predictable hotel operations. Japan is expected to remain a top focus for both local and global investors through 2025.
China
(FY 2024 and H1 2025)
Over the past 18 months, China has processed USD 2.71 billion in transactions, trading 8,380 keys across 36 deals. Most activity focuses on high-end, 5-star properties. Something to note here is that almost all of the investment in China comes from Chinese investors, with major investors including Jinfeng Cement, Lichi Consulting, Haizhu Industrial, Hengyi Investment, and Shandong Railway Fund. These investors prefer trophy assets in Tier 1 cities like Beijing, Shanghai, and Tianjin. These markets benefit from growth in luxury segments driven by increasing corporate and domestic leisure demand.
By mid-2025, domestic travel in Asia Pacific had not only recovered but surpassed pre-pandemic levels in several key markets. In China, the first half of the year saw 3.285 billion domestic trips, a 20.6% increase from last year, with spending rising 15.2% to 3.15 trillion yuan. This growth, driven by increased consumer confidence and a strong interest in leisure and experiential travel, including a 30.6% rise in rural tourism, has boosted the region’s hospitality, retail, and transportation sectors.
Small, strata-titled, and limited-service hotels remain attractive, especially for co-living or repositioning. These assets are appealing due to urban densification and affordability issues, offering flexibility and value-add opportunities for local investors.
Overall, China’s hotel market is stabilising. While large institutional investors remain cautious, opportunistic and strategic investors are increasingly active, especially in cities with potential for repositioning.
South Korea
(FY 2024 and H1 2025)
Between January 2024 and June 2025, the country had 22 hotel transactions worth about USD 2.62 billion, involving 5,824 rooms. The 4-star hotels dominated, generating USD 1.23 billion, with an average price of USD 424,000 per room. The luxury segment, though fewer in number, attracted the most investment — five deals exceeding USD 1.14 billion, with an average of USD 527,000 per room.
South Korea has become one of APAC’s most active hotel markets. By mid-2025, over 7.7 million international visitors returned, nearly restoring tourism. Hotel performance improved significantly, especially in luxury and upper-upscale hotels, where RevPAR in 2024 was 70% higher than pre-pandemic levels, mostly due to higher ADRs. Midscale and economy hotels also surpassed 2019 numbers, helped by visitors from China and Japan.
One of the largest deals in the country's history took place in 2025: Conrad Seoul. It shows strong interest from foreign private equity and local developers. Seoul's hotel inventory declined by about 4,000 rooms during the pandemic, and with few new projects, the market has healthy prospects for current and new investors. New hotels like Rosewood Seoul and Mercure Ambassador Magok are expected to boost the upper-tier market.
Looking forward, South Korea is likely to stay a top investment destination in Asia. As global financial conditions ease and more tourists arrive, the country offers a transparent investment climate, good infrastructure, and steady demand across luxury and mid-market hotels. While luxury growth may slow, midscale and budget hotels are expected to perform well, driven by affordability and rising regional travel.
Australia
(FY 2024 and H1 2025)
The hotel market in Australia is recovering. In 2023, RevPAR fully recovered, but occupancy is still slightly below pre-pandemic levels due to increased hotel supply over the past four years. Despite this, ADRs remain high thanks to inflation, strong branding, and limited new competition in key areas.
During the 18 months of 2025 and the first half of 2025, investment activity has involved 28 transactions totalling USD 1.63 billion. Most deals focus on upscale and upper midscale properties, which offer a good balance of returns and operational stability.
Looking ahead, high debt and rising construction costs are likely to slow new hotel developments. Investors are shifting focus to refurbishing, rebranding, and converting existing properties, especially in cities like Sydney and Melbourne, where replacement costs are much higher than current purchase prices.
Australia is a stable and transparent market, but investment decisions are increasingly based on replacement costs, ADR strength, and maximising the value of existing hotels.
Singapore
(FY 2024 and H1 2025)
Singapore’s hotel sector remained strong into 2024 and the first half of 2025, supported by tourism growth, cultural events, and limited new supply. Major events like the 'Taylor Swift Effect' increased room demand. Visa-free travel with Mainland China and better air connectivity also boosted arrivals.
From January 2024 to June 2025, deals totalled over USD 1.5 billion across 13 transactions. The 4-star segment dominated with USD 1.11 billion across eight deals, averaging about USD 139 million per deal and 601K per key.
What’s impressive here is that the average price per transaction of 4-star hotels was significantly higher than in the luxury segment. This indicates that upscale properties with more rooms attracted the interest of investors, while activity in the luxury segment focused on boutique hotels, most of which have fewer than 80 rooms. 5-star rooms sold at the highest prices in the entire region, averaging over USD 1.22 million per room.
Supply remains limited. Room inventory grew less than 2% in five years due to high construction costs and developers focusing on smaller, profitable projects instead of new large hotels. This keeps prices high and encourages investors to look for other opportunities.
In 2024, co-living conversions, like CapitaLand’s Hotel G rebranding to lyf, became more popular. Co-living offers flexible options for short and long stays, making it appealing in land-scarce markets like Singapore.
Overall Price per Key comparison:
Japan and China display similar pricing curves, closely aligned across all categories. Their trajectories are modest by comparison, with pricing per key remaining more accessible.
Australia exhibits mixed dynamics: while it remains comparatively moderate in the midscale and upscale segments, it leads the region in upper-upscale and luxury pricing.
South Korea consistently outperforms its regional peers across all hotel segments.
Singapore stands out as the regional outlier, breaking records across all segments — particularly in the upper-upscale and luxury tier, where the average price per key soars above USD 1.22 million.
High ADR Saves the Day
In 2024, the Asia-Pacific hotel industry continued to recover, with average daily rates (ADR) generally rising year-over-year across the region. Growth in room rates was modest overall – on the order of a few percentage points – reflecting a normalization after the sharp post-pandemic rebound. For example, through the first part of 2024, global ADR was up about 2.1% year-on-year, accelerating to over 4% growth by Q2, with Asia-Pacific following a similar pattern of mild rate increases.
Notably, rate gains were uneven across hotel tiers: the luxury and upper-upscale segments led the way, posting the strongest ADR increases, while midscale and economy hotels lagged.
In fact, STR data showed luxury and upper-upscale hotels driving global ADR growth (~4%+ year-on-year), whereas the lower tiers’ rate growth remained below inflation in 2024
This bifurcation was evident in Asia-Pacific as well, with upscale chains performing better than midscale/economy in terms of rate gains
Overall, region-wide ADR reached or exceeded pre-pandemic highs in many markets (often setting record levels), but the pace of increase moderated compared to the initial rebound year.
Let’s explore why ADR is the main factor driving RevPAR growth, and why it was essential for it to happen:
1. Cost Pressures:
Hotels are facing rising labour costs and increased expenses for energy, maintenance, and insurance. Wages are outpacing revenue growth in markets like Japan and Australia. Although ADR is rising, many hotels haven’t returned to pre-pandemic RevPAR levels mainly due to slow occupancy recovery. As a result, hotels are keeping daily rates high to maintain profit margins.
2. Limited New Supply:
There aren’t many new hotel developments because of high borrowing costs, construction inflation, and labour shortages. Most new supply is in the upscale and luxury segments, which can command higher rates. In places like Singapore, South Korea, and Tokyo, limited room availability helps hotels sustain or increase ADR.
3. Rebranding Over New Builds:
With financing for new constructions hard to come by, many operators are rebranding existing hotels to improve their rate categories. This allows them to increase room rates without building new properties.
4. Demand-Based Pricing:
Hotels are adopting real-time pricing strategies to respond quickly to demand changes during events or peak times. This flexibility helps them capitalize on high-demand periods even if overall occupancy is low. For instance, Singapore achieved high ADR in 2024 despite flat occupancy by leveraging event-driven pricing.
5. Inflation Defence:
ADR is being used to counter inflation, allowing hotels to adjust rates quickly to offset rising costs. In a volatile economy, maintaining rate integrity is a key part of revenue management.
Rising labour costs, increasing borrowing expenses, and high building, renovation, and remodelling costs are considered the biggest challenges in the region.
Overall Price per Key comparison:
The interest for “must-have assets”, brands trying to place flagships expanding to the APAC Region and the cost to build remaining significantly higher than the cost to buy, is reinforcing dense cities into a centre of attention for investors.
The top 10 cities gathered more than 62% of the Total Investment in APAC during the past 18 months.
During the past 18 months: 14% of total transaction volume in Asia-Pacific went to midscale and economy hotels. 41% was directed to upper-midscale and upscale properties, and 45% went to upper-upscale and luxury assets.
Largest Deals 2024
1º - Grand Nikko Tokyo Daiba (Nov 2024)
In November 2024, a consortium led by TPG Angelo Gordon and Kenedix acquired the Grand Nikko Tokyo Daiba for approximately ¥106 billion (USD 695.4 million), making it the largest single hotel transaction in Asia-Pacific for the year. The 882-room luxury hotel, located on Tokyo’s Odaiba waterfront, was purchased from Hulic Co. and valued at nearly USD 788,000 per key—a record-breaking price for the Japanese hotel market.
The acquisition aligns with TPG and Kenedix’s broader strategy of targeting value-add and opportunistic hotel investments in Asia, following the launch of new real estate funds totalling over USD 2.5 billion.
The Grand Nikko—rebranded in 2019 under the Okura-Nikko banner—was reportedly underperforming, with operational inefficiencies offering room for upside.
While no formal repositioning or capex plans have been disclosed, market expectations suggest that the new owners may pursue renovation, brand repositioning, or operational streamlining to unlock further value. The property includes extensive amenities such as multiple F&B outlets, a large-scale ballroom, spa facilities, and retail spaces. This landmark deal capped a record-setting year for Japan’s hotel investment market.
2º - The Park Front Hotel at Universal Studios Japan (Apr 2024)
In April 2024, a Tokyu Group-affiliated investment vehicle—managed by Tokyu Asset Management with participation from multiple domestic institutional investors—acquired The Park Front Hotel at Universal Studios Japan for an estimated ¥70 billion (~USD 593 million). The hotel features 598 rooms, making it one of the largest assets transacted in Osaka that year.
According to Tokyu’s March 2024 investor report, the acquisition reflects their strategy of “asset involvement utilising real estate development and management capabilities.” A private real estate fund was established in April specifically for this purpose, and Tokyu began taking an active role in both asset management and hotel operations, in addition to the existing hotel management contract through Tokyu Hotels & Resorts, which continues to operate the hotel under its Distinctive Selection lifestyle brand.
No major renovation or rebranding plans have been announced, indicating a focus on stable, long-term income generation. The hotel’s location—directly at the main gate of Universal Studios Japan—ensures consistently high demand from both domestic and international leisure travellers, supporting the fund’s income-driven strategy.
Though public reporting on the transaction has been limited, it is considered one of the largest single-hotel deals in Osaka in 2024.
3º - Hilton Fukuoka Sea Hawk – First Sale (Aug 2024)
In August 2024, Mizuho Leasing, through its real estate subsidiary ML Estate, acquired the Hilton Fukuoka Sea Hawk from GIC for approximately ¥64.8 billion (~USD 436 million). The 1,052-room full-service hotel is located on Hakata Bay, adjacent to the Mizuho PayPay Dome and within easy reach of Fukuoka Airport and downtown Tenjin. The asset was positioned as a long-term strategic hold, capitalising on Fukuoka’s growth as a convention and tourism destination.
The transaction was framed as a portfolio investment focused on asset management optimisation. No redevelopment or rebranding was announced. The property continues to operate under the Hilton brand, managed by Hilton under an existing long-term agreement. Public disclosures did not mention capex or renovation plans.
Given the nature of the two transactions involving the Hilton Fukuoka Sea Hawk, Mizuho clearly served as an intermediary between GIC and JHR. This is common in Japanese REIT deals to facilitate the RETI acquisition. Mizuho Leasing has a well-established history of acting as an intermediary in property acquisitions for Tokyo-listed REITs.
Largest Deals 2025
1º - Hilton Fukuoka Sea Hawk – Second Sale (Feb 2025)
On January 24, 2025, Japan Hotel REIT Investment Corporation (JHR), managed by SC Capital Partners, announced the acquisition of the Hilton Fukuoka Sea Hawk from Mizuho Leasing for ¥64.35 billion (~USD 414.6 million). Settlement took place in Q1 2025. The transaction involved the purchase of trust beneficiary interests in the hotel, marking one of the largest hotel acquisitions in Japan’s REIT sector.
JHR described the acquisition as a strategic portfolio enhancement, citing Fukuoka’s positive hotel demand outlook, driven by infrastructure improvements such as the planned second airport runway and ongoing urban development. The property will remain under the Hilton brand, with Hilton continuing to manage operations through a long-term lease agreement. JHR did not announce any rebranding or renovation plans.
2º - Conrad Seoul (Mar 2025)
In March 2025, ARA Korea Asset Management, a subsidiary of Singapore-based ARA Asset Management, completed the acquisition of the Conrad Seoul from Brookfield Asset Management for approximately KRW 400 billion (USD ~285 million).
The 434-room luxury hotel is located in Yeouido, Seoul’s prime financial and business district, and forms part of the IFC Seoul mixed-use complex, which also includes office towers and a major retail centre. The purchase price equates to roughly USD 657,000 per key, making it the largest single-hotel transaction in South Korea for the first half of 2025.
The sale was brokered through a competitive process led by JLL. ARA Korea identified the hotel as a core asset aligned with its regional strategy to expand holdings in high-quality hospitality properties across Asia Pacific. The property will continue to operate under the Conrad brand, managed by Hilton, with no rebranding or redevelopment plans disclosed at the time of sale.
3º - Hilton Sanya Resort and Spa (Jan 2025)
In January 2025, China Jinmao Holdings Group sold its entire stake in Jin Mao Sanya, the owner of the Hilton Sanya Yalong Bay Resort & Spa, to Hainan Lichi Consulting Company Limited for RMB 1.85 billion (about USD 234 million). The sale was made through a public tender via the China Beijing Equity Exchange and included related claims. After the sale, Jin Mao Sanya is no longer a subsidiary of China Jinmao.
The Hilton Sanya Yalong Bay Resort & Spa is a five-star beachfront hotel in Yalong Bay, Hainan, with 492 rooms and extensive leisure and dining facilities. It remains under the Hilton brand, with no announced rebranding or operational changes.
According to Jinmao’s 2024 annual report, the hotel had strong performance: an average room rate of RMB 1,367 (~USD 190), occupancy rate of 85.1%, and RevPAR of RMB 1,163 (~USD 165). These figures made it one of the top assets in Jinmao’s hospitality portfolio. The sale price was about 15% above its last appraisal value of RMB 1.606 billion in August 2024.
This deal is one of the largest resort hotel transactions in Hainan, China.
Largest Hotel Deals by number of rooms
Honorable Mention
Park Hyatt Melbourne (Aug 2025)
One notable example is the acquisition of the 245-room Park Hyatt Melbourne by the Thailand-based hospitality company KS Hotels & Resorts. The transaction was reported in August this year for AUD 205 million (approximately USD 129.5 million), making it the largest hotel transaction in Australia so far in 2025, and the largest in Melbourne since 2017.
This property is situated in the exclusive 'Paris End' of Melbourne’s CBD. It features 245 luxurious guest rooms and suites, multiple conference and event spaces, a restaurant and bar, an indoor swimming pool, a fully equipped gym, and on-site parking.
KS Hotels & Resorts’ core business is investing in and developing luxury hospitality properties across the Asia-Pacific. The group owns a curated portfolio of high-end hotels, including iconic assets like the Park Hyatt Siem Reap, Park Hyatt Maldives, JW Marriott Gold Coast, and JW Marriott Khao Lak. This recent acquisition of this trophy asset aligns with their strategic goals. The property is located in Melbourne, a market that has established itself as one of the most attractive destinations for investors in Asia-Pacific.
Global Asset Solutions was appointed to provide asset management for this property moving forward.
Projections and Insights
2025 H1 in Numbers
Hotel transaction activity in the Asia-Pacific has remained resilient but moderated in the first half of 2025. Total transaction volume reached just over USD 5 billion across 56 deals, marking a decline from USD 5.74 billion in H1 2024. Despite the reduction in both deal volume and number of transactions, investment remains heavily focused on the luxury and upper-upscale segments, which together account for approximately 70% of total volume year-to-date. Investor appetite continues to favour high-quality, income-producing assets in key urban centres and established resort destinations.
Evolving Development Trends and Tourism Growth in Asia-Pacific
The Asia-Pacific hotel development pipeline is limited due to ongoing challenges like high labour costs, construction costs and tighter financing for new projects. Developers and investors are focusing on strategies such as repositioning, rebranding, and repurposing existing assets to avoid full development risks.
Despite fewer new hotels, major global brands continue expanding in the region. By the beginning of 2024:
• Marriott has almost 61,000 rooms under construction.
• Accor: over 47,000 rooms
• IHG: over 34,000 rooms
• Hilton: almost 32,000 rooms
• Wyndham: over 21,000 rooms
These five companies account for nearly half of the region's construction pipeline, with their share growing from 20% to 24% over six years. Their growth is driven by lifestyle brands that focus on design, wellness, and loyalty programs to attract modern travellers seeking experiences.
This reflects a larger shift in travel habits. Guests now value experiences over things, and hotels have become social and cultural spaces. Lifestyle hotels are popular not just with tourists but also locals, featuring public areas, food and beverage events, and engaging designs.
Asia-Pacific: The Beating Heart of Global Recovery
International travel has nearly returned, standing just 2% below pre-pandemic figures, while global patterns continue to evolve. APAC has emerged as the primary growth engine, driven by a robust rebound in regional travel and a surge in tourism.
According to the International Air Transport Association (IATA), global air travel demand rose 5% year over year by May 2025. The Asia-Pacific region alone accounted for 9. 9,4% of that, with international travel within the region climbing 13. 3% (outpacing the rest of the world).
Contrasting Economies
This rapid expansion is more than a recovery; it's a fundamental rebalancing of global tourism, with APAC leading the way. Meanwhile, the U.S. is slowing down and even contracting its tourism economy, marking a 1.7% drop in travel demand in May 2025.
Analysts believe that the divergence between the booming Asia-Pacific tourism market and the slowed North America will increase in the upcoming months. APAC is set to host major global events, open more routes, and attract robust outbound tourism.
Japan: Resilient, Reopened, Reinvesting
Japan's standout story is that the country has surpassed pre-pandemic international arrivals, supported by streamlined visa policies, aggressive tourism campaigns, and sustained infrastructure investment.
Also, M&A activity in the country is robust, and investors are still interested in the Land of the Rising Sun. Hotel development, transportation upgrades, and destination marketing are converging to position Japan as a top-tier tourism hub for years to come.
Strategic Partnerships
Across the Asia-Pacific region, government, investor, and company partnerships are transforming the tourism industry. These collaborations are increasing hotel construction, infrastructure upgrades, and new travel experiences, especially in fast-growing markets like Japan and Southeast Asia.
In Japan, public-private partnerships are helping to boost tourism. Local governments work with airlines and hotels to promote destinations outside Tokyo, such as Kyushu and Tohoku. Additionally, real estate trusts like Japan Hotel REIT (JHR) are partnering with global brands like Hilton, exemplified by the Hilton Fukuoka Sea Hawk, which Hilton operates under a long-term lease.
In other parts of the region, hotel groups like Accor are working with developers in Vietnam to create integrated resorts. Meanwhile, Thailand's Minor Group partners with the government and airlines to promote wellness tourism and multi-city trips.
Managing the Boom:
As the most dynamic region in the world, APAC leads in travel demand and demonstrates strong deal activity and hotel investments, which introduces some complexity.
The existing operational pressures, ongoing staffing issues, and high operational and construction costs create a critical moment to manage the boom in the region. In this context, hotel asset managers are more valuable than ever. Whether for growth potential, deal closures in fierce competition, thinner margins, or higher guest expectations, support from an asset manager is essential to align the goals of ever-growing brands and investors.
In a region where deals are happening quickly and travel is booming, having an experienced independent asset manager is crucial to maintaining long-term value, ensuring operational success, and meeting the expectations of guests who are more demanding than ever before in history.
Authors:
Alex Sogno
Chief Executive Officer
Douglas Louden
Managing Partner
Robert Walters
Chief Investment Officer
Juan Manuel Gea
Corporate Business Manager
