Luxury and upscale assets accounted for almost 85% of the total hotel investment in the Asia Pacific region during 2024, according to the latest research from Global Asset Solutions.
The company’s Asia-Pacific Hotels Transactions & Market Snapshot for full-year 2024 and first half of 2025 reported that an increase in liquidity, driven by the strong dollar, had helped to bolster deals.
For all hotel deals exceeding $20 million, the total transaction volume in the region during 2024 reached $11.2bn, with 139 transactions.
The study found that Japan was the most in-demand hotel market, with a weak yen and near-zero interest rates, resulting in the country accounting for over $4 billion in hotel transaction volume, nearly 40% of the total for the year.
The largest single-asset transaction was the acquisition of the Grand Nikko Tokyo Daiba by a consortium led by TPG Angelo Gordon and Kenedix, for approximately ¥106bn ($695.4 million), The 882-room luxury hotel, located on Tokyo’s Odaiba waterfront, was purchased from Hulic Co. and valued at nearly $788,000 per key – a record-breaking price for the Japanese hotel market.
Asia Pacific rebounded strongly from the pandemic and its rising RevPAR and ADR have attracted investors eager to share in its growth. The luxury sector represents the greatest opportunity for returns and has attracted the majority of capital. At Global Asset Solutions, we share investors’ enthusiasm for this dynamic and innovative sector, but understand that, to maximise the potential of an asset, specialist knowledge of both the sector and the wider region is essential. Alex Sogno, CEO of Global Asset Solutions
The market was further supported by limited new supply, with expansion hindered by high borrowing costs, construction inflation and labour shortages. Most new supply was found in the upscale and luxury segments, with developers and investors attracted to the possibility of high rates.
Hotel transaction activity in the Asia-Pacific remained resilient but moderated in the first half of 2025, reaching just over $5bn across 56 deals, marking a decline from $5.74bn in the same period last year. Despite the reduction in both deal volume and number of transactions, investment remained heavily focused on the luxury and upper-upscale segments, which together accounted for approximately 70% of total volume year-to-date.
Looking ahead, hotels are facing rising labour costs and increased expenses for energy, maintenance, and insurance, with wages outpacing revenue growth in markets including Japan and Australia.
Urban and resort locations remain much-sought after in the region and we are seeing strong competition for prime assets. A keen operational eye will be required to manage cost pressures and drive profits in these attractive, but complex assets. Douglas Louden, managing partner, Global Asset Solutions
The study was released as Global Asset Solutions opened a dedicated Asia Pacific office in Singapore.
About Global Asset Solutions
Global Asset Solutions operates worldwide providing independent hotel asset management services. Clients include PE firms, institutional investors, sovereign funds and family offices, with over $20bn of assets managed in Europe, Asia and the Middle East. The company leans on decades of experience in the luxury sector to deliver bespoke solutions which allow investors to grow their asset value and realise the potential of their assets. www.globalassetsolutions.com
Alex Sogno
CEO & Senior Hotel Asset Manager
Global Asset Solutions
