Market Snapshot: Asia Pacific 2025 | By Hok Yean Chee

Transactions in the Asia Pacific

In 2024, hotel transaction volume in the Asia Pacific recorded approximately USD11.5 billion, a modest 3% decrease from USD11.9 billion in 2023. While activity has softened, the pace of decline has significantly improved compared with the sharper 14% decline recorded between 2022 and 2023. The slowdown can be attributed not only to elevated borrowing costs but also to factors such as prolonged transaction timelines due to cautious due diligence and lingering macroeconomic uncertainties across major markets. On a trailing 12-month basis, transaction volume decreased 9% from USD12.4 billion to USD11.2 billion, with deal count easing from 492 to 456. Despite this, the narrowing pace of decline, together with resilient travel demand and selective regional growth, suggests that investors are likely to remain cautiously optimistic and selective.

Market Snapshot: Asia Pacific 2025

Market Snapshot: Asia Pacific 2025 Transaction History in the Asia Pacific (2020 - 2Q 2025) (*Please note mentions of "transaction values" pertain to the transaction volume based on relevant stake/interest as of the mentioned date) (source: HVS Research)

Top Three Most Active Markets (3Q 2024 to 2Q 2025)

Both transaction activity, measured by the number of completed transactions, and transaction volume for hospitality assets showed varied trends in China, Japan, and South Korea over the last four quarters. Despite a notable slowdown with transaction volumes declining by 54% year-on-year (YOY) to USD2.1 billion, with a decrease in deal count from 97 to 76 in China, the country remains of the top 3 most active markets in Asia Pacific. This reflects a more cautious domestic investment environment, with investors adopting a wait-and-see approach. Japan saw further momentum, with transaction volume rising 15% to USD3.5 billion, attributed to strong inbound tourism demand and continued yen weakness. South Korea also registered growth with a 25% YOY increase in transaction volume to USD1.7 billion despite a slight reduction in the number of deals. The uplift underscores selective confidence in the hospitality sector, especially in Seoul, where international investors are beginning to return.

Market Snapshot: Asia Pacific 2025 Transaction Volume in Top Three Most Active Markets (3Q 2023- 2Q 2025) (*Please note mentions of "transaction values" pertain to the transaction volume based on relevant stake/interest as of the mentioned date) (source: HVS Research)

Major Investors in the Asia Pacific

In 2024, transaction activity from the top ten investors in the Asia Pacific accounted for approximately USD5.1 billion or 29% of total transaction volume.

The year saw a diverse mix of domestic and cross-border investments, reflecting both opportunistic acquisitions and portfolio-driven strategies, By number of transactions, China-based Hillhouse Capital led the pack with 20 deals, followed by US-based KKR with 16 transactions. Japan-based Mizuho Leasing was also active, recording five transactions.

Keep reading here.