APAC hotel transactions surge as investors shift focus

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The Asia Pacific hotel market saw a significant increase in transactions, reaching $17 billion in 2025, a 51.9% rise from the previous year, according to the APAC Hotel Transactions and Market Outlook FY 2025 and H1 2026 by Global Asset Solutions. This surge is attributed to investors favouring existing hotel assets over new developments due to high costs and supply chain issues.

The report highlights that upscale, midscale, and economy hotels dominated transaction volumes, whilst luxury hotels maintained strong pricing power despite a decline in transaction volume from 41.1% in 2024 to 16.1% in 2025. Average luxury pricing rose by 24% to approximately $585,000 per key.

Alex Sogno, CEO of Global Asset Solutions, noted, “Expensive financing, high labour and construction costs, and constrained supply chains have fundamentally changed the economics of hotel development.” He emphasised that acquiring and improving existing hotels is often more viable than new builds, especially in the luxury segment where room rates justify investment.

Singapore emerged as the region's most expensive hotel market, with average pricing at $656,000 per key. Australia recorded the highest luxury pricing among featured markets, with transactions such as the Park Hyatt Melbourne.

The report also points to the importance of active asset management in maximising revenue conversion into sustainable cash flow. As geopolitical uncertainties and rising interest rates impact the market, investors are urged to focus on unlocking potential in existing assets rather than relying on new developments.

Representatives from Global Asset Solutions will discuss these insights at the International Hospitality Investment Forum Asia in Hong Kong from 16 to 18 September


This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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APAC hotel transactions surge as investors shift focus

The Asia Pacific hotel market saw a significant increase in transactions, reaching $17 billion in 2025, a 51.9% rise from the previous year, according to the APAC Hotel Transactions and Market Outlook FY 2025 and H1 2026 by Global Asset Solutions. This surge is attributed to investors favouring existing hotel assets over new developments due to high costs and supply chain issues.

The report highlights that upscale, midscale, and economy hotels dominated transaction volumes, whilst luxury hotels maintained strong pricing power despite a decline in transaction volume from 41.1% in 2024 to 16.1% in 2025. Average luxury pricing rose by 24% to approximately $585,000 per key.

Alex Sogno, CEO of Global Asset Solutions, noted, “Expensive financing, high labour and construction costs, and constrained supply chains have fundamentally changed the economics of hotel development.” He emphasised that acquiring and improving existing hotels is often more viable than new builds, especially in the luxury segment where room rates justify investment.

Singapore emerged as the region's most expensive hotel market, with average pricing at $656,000 per key. Australia recorded the highest luxury pricing among featured markets, with transactions such as the Park Hyatt Melbourne.

The report also points to the importance of active asset management in maximising revenue conversion into sustainable cash flow. As geopolitical uncertainties and rising interest rates impact the market, investors are urged to focus on unlocking potential in existing assets rather than relying on new developments.

Representatives from Global Asset Solutions will discuss these insights at the International Hospitality Investment Forum Asia in Hong Kong from 16 to 18 September


This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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