The recovery — and emergence — of certain segments could further buoy trading performance in the hotels sector. Among the bright spots are assets in the luxury, resorts, and co-living segments, all of which have proven resilient since the pandemic, says Li.

“For instance, resort destinations have traditionally been a niche product, but its strong yield and growth performance are especially appealing to investors now,” Li says.

A prime example is Phuket, where average room rates in January surged 50% relative to 2019 levels to reach THB 9,000 ($264), according to JLL.

“We expect to see more specific opportunities emerge in some destinations across Asia Pacific, where prices have been adjusted downwards, enabling interested parties to reconsider,” says Ercan.

“Investors remain very committed to the Asia Pacific hospitality sector and we see ongoing appetite among buyers to invest in key markets and strategic assets, with the ability to deploy capital.”