Asia Pacific hotel investment hits US$8 billion in H1 2026
Strong hotel fundamentals and new liquidity channels may sustain investment, although elevated borrowing costs could constrain returns and slow transaction-volume growth in H2 2026.
Asia Pacific hotel investment reached US$8.0 billion in H1 2026, rising 21% year on year as Japan, mainland China and Korea led activity.
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This represents a 21% jump from the same period last year.
Asia Pacific hotel investment volume reached US$8.0 billion in H1 2026, up 21% from the same period a year earlier, with Japan, mainland China and Korea leading transaction activity, according to CBRE.
Mainland China recorded the strongest growth, with hotel investment volume more than doubling year on year in the first six months of 2026. CBRE attributed part of the increase to regulatory changes that took effect in late 2025, allowing four-star and above hotel projects to be included among the underlying assets of China's C-REITs.
According to CBRE, the change is providing greater liquidity and additional exit opportunities for hotel investors. However, eligibility requirements remain strict. In particular, remaining land tenure must match the fund term, while leasehold land must have at least 20 years of remaining tenure.
Investor interest in the living sector is also generating hotel acquisition activity, particularly in Hong Kong SAR, where hotels are being converted into student accommodation. CBRE said nine hotels totalling about 1,600 rooms changed hands in H1 2026, compared with just two transactions in the first half of 2025.
CBRE expects strong hotel fundamentals to continue supporting investment activity in the second half of 2026. However, the consultancy cautioned that elevated borrowing costs in some markets could constrain investment returns and lead to slower transaction-volume growth than recorded in H1 2026.