Asia-Pacific Hotel Investment Rises 21% as Travel Demand Strengthens

Asia-Pacific hotel investment increased 21% year-on-year to USD8bn during the first half of 2026 as strong travel demand and constrained new supply supported investor interest, according to CBRE.

Japan, mainland China and South Korea led activity, while investors increasingly targeted existing properties for repositioning and conversion as higher construction and financing costs restricted new development.

Hotel supply across Asia-Pacific is expected to grow by around 2.3% annually through 2029, substantially below the historical average of 5.1%. Mainland China is expected to account for almost half of new rooms.

In Hong Kong, some hotel acquisitions have involved conversion into student accommodation, illustrating alternative strategies for existing assets.

Higher borrowing costs could moderate transaction activity during the second half.

However, CBRE said investors remain focused on markets offering favourable demand and supply fundamentals as the region’s travel sector continues to expand.