APAC investment volume to top $13.3B in 2026: JLL

SINGAPORE – JLL has forecast hotel investment volumes in 2026 will total approximately $13.3 billion, representing an uptick from the revised 2025 forecast of $11.9 billion. It cited strong travel demand and changing tourism habits offsetting global economic volatility and uncertainty.

JLL said its forecast underscores a market characterized by strong buyer appetite confronting increasingly constrained asset supply, with safe-haven destinations commanding premium valuations and emerging markets presenting relative value opportunities.

While transaction volumes remain below historical peaks, the underlying tourism recovery story provides compelling support for long-term asset values.

Nihat Ercan

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Furthermore, JLL concluded that continued macroeconomic uncertainty is driving extended due diligence timelines and heightened focus on cost management among institutional investors, leading to more selective capital deployment strategies across the region, causing a more stable investment outlook.

JLL's analysis has identified Japan, Singapore, and Australia remaining highly sought-after destinations in the latter parts of 2025 and into 2026, particularly among private wealth investors targeting landmark assets. Elsewhere, the firm sees opportunities in markets including Vietnam is gaining significant traction as an emerging opportunity.

“A challenging economic 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.”

Market fundamentals remain robust, with UN Tourism forecasting continued international arrivals growth of 3% to 5% throughout 2025. Regional performance data supports this optimism with Asia Pacific international arrivals rising 11% year-on-year in the first half of 2025, achieving 92% of pre-COVID levels.

Northeast Asia demonstrated the strongest recovery trajectory with 20% growth, while leading destinations, including Japan and Vietnam, each recorded exceptional 21% arrival increases, and South Korea delivered 15% growth.

Volatility can’t be ignored but the region’s growing middle class, strategic geographic positioning, and improving tourism infrastructure create compelling long-term growth prospects that sophisticated institutional investors recognize and are positioning to capture.

Nihat Ercan

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JLL further stated that revenue performance metrics further validate a hypothesis of investment stability in 2026. It said Asia Pacific’s hotel industry has deliverable a respectable 3% growth in RevPAR year-to-date August 2025.

JLL's revised 2025 transaction volume forecast of $11.9 billion reflects the impact of prolonged transaction timelines and enhanced due diligence requirements amid ongoing geopolitical uncertainty.

Liquidity is expected to remain concentrated in five core markets - Japan, Australia, Greater China, Singapore, and South Korea - which continue to attract the majority of institutional capital flows.

“Despite near-term headwinds, the structural drivers supporting Asia Pacific hospitality investment remain intact,” Ercan said. “Volatility can’t be ignored but the region’s growing middle class, strategic geographic positioning, and improving tourism infrastructure create compelling long-term growth prospects that sophisticated institutional investors recognize and are positioning to capture.”