Thailand and China are also attracting strong investor interest. Together with Japan, the three countries accounted for 88% of all APAC hotel transactions in the second quarter.

Not surprisingly, official Thai data indicates the country welcomed over 17.5 million visitors in the first half of 2024, up 35% year-on-year. This is sparking deals, such as the recent sale of The Lamai Samui Resort & Spa Koh Samui and Dhara Dhevi Chiang Mai for $64 million.

However, in China, the uptick in hotel deal activity has been mainly driven by domestic investors.

“Foreclosure sales have led to higher transaction volumes in both major and secondary cities,” notes Ercan. “The swift recovery of domestic hotel trading performance is also attracting the interest of non-institutional hotel investors, potentially expanding the buyer pool.”

With inbound travel to APAC on a continuous upswing, hotel deal activity in the region is expected to pick up in the second half of 2024 and reach $11.6 billion for the full year, according to JLL estimates.

Ercan believes Japan, China, and South Korea will remain top markets for hotel transactions in the region.

“Japan and Korea remain tourism powerhouses, driving strong hotel performance and stimulating investor appetite,” says Ercan. “This is particularly true for Japan where favourable market conditions persist.”

Beyond the established leaders, emerging markets like India, Indonesia, and Thailand, are now poised for record growth as investors set sights on capitalising on the tourism resurgence.

“India's tourism boom, marked by the increase in tourist arrivals and improved hotel performance, has sparked renewed interest among hotel operators and investors in India since mid-2023,” says Ercan.

“Meanwhile, weaker currencies in Indonesia and Thailand, along with easier visa access, are expected to spur tourism and hotel performance, further drawing investors to these markets.”