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Grand Nikko Tokyo Daiba was sold for approximately ¥106 billion ($695.4 million) – Image Credit Okura Nikko Hotels
In 2024, the Asia Pacific region saw a significant surge in hotel investments, with luxury and upscale assets dominating the market. According to the latest research from Global Asset Solutions, these high-end properties accounted for nearly 85% of the total hotel investment in the region. This trend was fueled by increased liquidity, largely driven by the strong dollar, which facilitated a robust deal-making environment.
2024 in Numbers
The report, titled “Asia-Pacific Hotels Transactions & Market Snapshot,” covered the full year of 2024 and the first half of 2025. It highlighted that for hotel deals exceeding $20 million, the total transaction volume reached $11.2 billion across 139 transactions in 2024. Japan emerged as the most sought-after market, benefiting from a weak yen and near-zero interest rates. This economic climate led to Japan accounting for over $4 billion in hotel transaction volume, representing nearly 40% of the total for the year.
A notable transaction was the acquisition of the Grand Nikko Tokyo Daiba by a consortium led by TPG Angelo Gordon and Kenedix. The 882-room luxury hotel, located on Tokyo’s Odaiba waterfront, was purchased for approximately ¥106 billion ($695.4 million) from Hulic Co. This deal set a record-breaking price for the Japanese hotel market, with the property valued at nearly $788,000 per key.
Alex Sogno, CEO of Global Asset Solutions, commented on the region’s strong rebound from the pandemic. He noted that the rising Revenue Per Available Room (RevPAR) and Average Daily Rate (ADR) in Asia Pacific have attracted investors eager to capitalize on growth opportunities. Sogno emphasized that the luxury sector presents the greatest opportunity for returns, drawing the majority of capital. However, he stressed the importance of specialist knowledge to maximize the potential of these assets.
A limited new supply of hotels further supported the market’s growth. High borrowing costs, construction inflation, and labor shortages hindered expansion efforts. Most new developments were concentrated in the upscale and luxury segments, where the potential drew developers and investors for high rates.
Despite the robust performance in 2024, hotel transaction activity in the Asia Pacific moderated in the first half of 2025. The region saw just over $5 billion in transactions across 56 deals, a decline from $5.74 billion during the same period the previous year. Nevertheless, investment remained heavily focused on the luxury and upper-upscale segments, which together accounted for approximately 70% of the total volume year-to-date.
Looking ahead, hotels in the region are likely to face rising labor costs and increased expenses for energy, maintenance, and insurance. In markets like Japan and Australia, wages are outpacing revenue growth, presenting challenges for hotel operators.
Douglas Louden, managing partner at Global Asset Solutions, noted the continued strong competition for prime assets in urban and resort locations. He emphasized the importance of maintaining a keen operational eye to manage cost pressures and drive profits in these attractive yet complex assets.
The study was released as Global Asset Solutions opened a dedicated Asia Pacific office in Singapore, underscoring the company’s commitment to the region and its dynamic hotel market.
Download Asia-Pacific Hotels Transactions & Market Snapshot.
