Investment in Asia-Pacific hotels dropped to four point seven billion US dollars in the first half of two thousand twenty-five, down about twenty-three percent from the same period a year earlier, according to real estate consultancy JLL.

Japan led the region with one point five billion dollars in transactions, followed by China with seven hundred and forty-four million, Australia with six hundred and sixty-four million, Singapore with five hundred and forty-six million, and South Korea with five hundred and four million—these five markets accounted for over eighty-four percent of all deals.

Thailand, however, was a standout performer, racking up three hundred and one million dollars in hotel investment (about nine thousand eight hundred million baht), powered largely by domestic buyers.

Analysts expect Thailand’s investment value to reach around six hundred and fifty million dollars by the end of the year as investor confidence recovers.

JLL cited macroeconomic uncertainty and wider gaps between what sellers are asking and what buyers are willing to pay as reasons for the regional slowdown, with due diligence periods lengthening.

Private equity firms and high-net-worth individuals increasingly active; capital from wealthy individuals rose fifty-four percent year-on-year in H1.

Key tourism markets in the region saw strong performance: foreign arrivals rose twelve percent in the first quarter of the year, pushing metrics such as revenue per available room and occupancy rates in major cities back to near or above pre-COVID levels.

In Bangkok, despite a drop of over six percent in foreign visitor arrivals in the first seven months, average daily room rates hit record highs.

Thailand’s hotel market is expected to “normalize” in two thousand twenty-five, according to JLL, with total transaction volume expected at about thirteen thousand million baht (roughly three hundred and eighty-five million dollars).

Bangkok is forecast to account for about sixty percent of the country’s deal value.

Average deal size is projected to rise to one thousand eight hundred million baht (around fifty-three million dollars), eighty percent above the decade-long average.

Hotel sector financing is evolving: green loans, sustainability-linked financing, and non-bank capital are playing a greater role, while traditional bank credit continues to support large, established hotel projects.

The full-year regional investment total for Asia-Pacific is forecast to reach about twelve point eight billion dollars, up roughly five percent from the previous year.