KUALA LUMPUR - Jones Lang LaSalle (JLL) says hotel investment and transaction activity in Asia-Pacific is showing increasingly positive signs despite persistent global economic volatility.

The firm forecasts hotel deal value in the region to reach US$11.9 billion in 2025, supported by resilient travel demand and changing tourist behaviour.

JLL noted that while investor appetite remains strong, the supply of high-quality hotel assets is becoming more constrained.

Lower-risk markets continue to command higher pricing, while emerging destinations are offering opportunities to acquire assets now and unlock value later.

At the same time, heightened economic uncertainty has made investors more cautious, resulting in longer deal timelines, deeper due diligence and a stronger focus on cost discipline.

JLL said these more measured approaches are likely to contribute to greater market stability over the longer term.

Looking ahead to late 2025 and 2026, the hotel markets attracting the most investor interest are Japan, Singapore and Australia.

This trend is especially evident among high-net-worth individuals seeking distinctive hotel assets with clear potential for value creation.

Vietnam was also highlighted as a rising market, with a growing pool of investable hotel opportunities coming to the fore.

In Thailand, hotel transactions continue to be driven mainly by local investors, while foreign buyers, particularly from Southeast Asia, remain selective but interested.

JLL said most hotel deals in Thailand are still small to mid-sized compared with those in core regional markets.

The firm expects Thailand’s hotel transaction value to be unusually high in 2025 at about US$804 million, before easing to around US$402 million in 2026, closer to its long-term average.

One factor weighing on Thailand’s appeal relative to some neighbours is a slower recovery in tourism.

Citing data from the United Nations World Tourism Organisation, JLL said global international travel is projected to grow by 3–5% in 2025.

In the first half of 2025, international arrivals in Asia-Pacific rose 11%, reaching 92% of pre-pandemic levels.

Japan and Vietnam recorded the strongest rebounds at 21% each, followed by South Korea with a 15% increase.

Thailand, however, saw international arrivals fall 8% in the first nine months of 2025, while arrivals from China dropped 35%, leaving the Chinese market at about 40% of pre-COVID levels.

Despite this, arrivals from some markets continued to grow, including India at 15%, the United Kingdom at 14% and Russia at 10%.

Across Asia-Pacific, average revenue per available room rose 2%, but Thailand’s RevPAR declined 4% due to weaker occupancy growth and intensified competition, particularly from Vietnam.

Even with softer operating performance, JLL said Thailand’s hotel investment market remained active.

In the first nine months of 2025, hotel transaction value in Thailand reached US$642 million, exceeding both the previous year and the 10-year average.

JLL estimated that nearly 70% of transaction value was driven by Thai investors, with several large Bangkok hotel deals offering scope for future value enhancement.

The firm also noted growing investor interest in leasehold hotel assets as high urban land prices encourage the use of long-term lease structures.

Leasehold hotel transactions were valued at about US$127 million, accounting for nearly one-fifth of Thailand’s overall hotel investment market.