Shareholder and government pressure to drive ESG change at Asia Pacific hotels

Investors in Asia Pacific hotels increasingly will make investments based on sustainability aspects as expectations from shareholders and ambitious net-carbon-zero targets assigned by governments influence decision-making.  Approximately 75 percent of investors surveyed by JLL identified environmental, social and governance (ESG) factors as important when deploying capital, despite Asia Pacific’s hotel sector lagging behind other regions in the adoption of sustainability practices.

According to JLL’s analysis, both investors and operators will place a higher priority on ESG aspects of hotel investment to help secure funding for asset purchases or redevelopment. Given that the majority of the global investors are headquartered in Europe and the United States, where they face strict requirements from institutions and governments, Asia Pacific’s hotel sector is not immune from scrutiny and will require more defined ESG strategies to meet both investor and consumer demands