Luxury and upscale hotels were the focus of investor interest in acquisitions in Asia-Pacific in 2024, according to the latest research from Global Asset Solutions.
The research showed that more than 85% of hotel acquisition transactions over $20 million were in these categories.
The Asia-Pacific Hotels Transactions & Market Snapshot study records $11.2 billion in hotel transactions over $20 million, across 139 deals. Enhanced liquidity, also thanks to the strength of the US dollar, gave a boost to the market.
Japan emerged as the most sought-after market, accounting for almost 40% of the trading volume – more than $4 billion. The weak yen and near-zero interest rates fueled investor interest.
The biggest deal of the year was the acquisition of the Grand Nikko Tokyo Daiba by a consortium led by TPG Angelo Gordon and Kenedix. The 882-room luxury hotel changed hands for 106 billion yen ($695.4 million), with a valuation of almost $788,000 per room – a record price for the Japanese market.
The market is also supported by limited new supply, as high borrowing costs, rising construction costs and a labor shortage slow investment plans. What new units are being developed are focused on the upscale and luxury segment, where yields are considered more attractive.
Despite the momentum in 2024, transactions in the first half of 2025 showed a decline. Total volume reached $5 billion in 56 deals, compared to $5.74 billion last year, with interest remaining 70% focused on the upper hotel categories.
“Asia-Pacific has rebounded strongly since the pandemic, with rising RevPAR and ADR attracting investors,” notes Alex Sogno, CEO of Global Asset Solutions, adding that specialized market knowledge is critical to maximizing returns.
However, cost pressures are becoming increasingly intense. Costs for wages, energy, maintenance and insurance are all on the rise, with wage growth outpacing revenue growth in markets such as Japan and Australia.
“Urban destinations and resorts remain in high demand, but careful management is required to address cost challenges and ensure profitability,” says Douglas Louden, managing partner at Global Asset Solutions.
