Asia Pacific hotels and hospitality market poised for strong growth as tourist return approaches full recovery by 2024

Institutional investors are attracted to prime hotel assets in tier 1 markets across Asia Pacific, even though tourist arrivals in key destinations are only reaching 70 percent to 80 percent of pre-pandemic levels, according to CBRE research.

“With limited supply of high-quality assets, we anticipate intense competition among investors for the best hotel properties across Asia Pacific,” said Dr. Henry Chin, global head of investor thought leadership and head of research, Asia Pacific. “Despite the region’s uneven tourism recovery, core assets in Japan, Singapore, Australia and Korea, as well as resort markets continue to generate strong interest.”

As of third quarter 2023, Asia Pacific hotel investment volume was down 29 percent year-over-year to $8.44 billion, with Japan accounting for approximately one-third of investment activity. While overall investment activity remains cautious, well-located, high-quality hotel assets in key markets remain attractive.