By the end of September 2024, cumulative transaction volumes hit $9.05 billion, up 15% from the same period in 2023 ($7.87 billion), and close to 90% of 2019 levels. Japan led the surge in cross-border investments, while Australia saw an unusual dip in activity.

Nihat Ercan, CEO of JLL Hotels & Hospitality Group, Asia Pacific, stated, "A positive economic outlook, supportive interest rates, and solid consumption trends make us confident that 2024 hotel investment will exceed last year's performance. Investors continue to show strong interest in the hotel sector in Asia Pacific, and we expect activity to remain robust in the final quarter, prompting us to increase our forecast to $12.2 billion."

JLL's analysis also shows that average daily rates (ADRs) in the region have risen by 19% in local currencies compared to the last cyclical peak in 2018-2019. Most markets still have potential to recover pre-pandemic occupancy levels, as business travel remains strong, although leisure travel has tapered slightly. However, the final recovery in occupancy may take longer, especially with slower returns from MICE (Meetings, Incentives, Conferences, Exhibitions) events and ongoing economic challenges in Mainland China.

Country-level investment trends for the first nine months of 2024 were generally positive, with a few exceptions:

Japan: The country continues to be the top hotel investment market in Asia Pacific, with $3.8 billion in sales by September. JLL forecasts total sales to reach $4.7 billion in 2024, and $4.9 billion in 2025, driven by strong supply-demand fundamentals despite recent interest rate hikes and a stronger yen.

China: Hotel investments in Mainland China reached $1.8 billion by the end of September 2024, a 6.4% increase from the previous year. Shanghai and Beijing led with over 50% of total transactions. The full-year forecast for total hotel investments is $2.1 billion.

Australia: Sales volumes in Australia have been subdued, totaling $629 million year-to-date, down 38% from last year. JLL estimates that total transactions will reach about $1.1 billion by year's end, which is below the long-term average.

Korea: Transactions totaled $1.1 billion in 2024, with the Conrad Seoul being the largest deal. JLL expects total transaction volumes to close at $1.3 billion for the full year.

Singapore: The country's booming tourism industry has driven investor interest, with 2024 deals surpassing previous years. JLL forecasts total hotel investments to reach $1 billion by year's end.

Hong Kong: While Hong Kong remains active, buyers are becoming more selective, focusing on prime city center locations. JLL expects 2024 volumes to be around $500 million, 35% below 2023 levels, but predicts a rebound in 2025 as tourism improves.

India: Hotel investment volumes surged from $76 million in 2022 to $337 million in 2023, with JLL projecting $440 million for 2024. Development interest also remains high, with over 19,500 new hotel rooms signed in 2024.

Thailand: After a dip in 2023 due to wide bid-ask spreads and rising interest rates, Thailand has seen a recovery in 2024. Year-to-date transactions total $404 million, with a full-year forecast of over $450 million. JLL expects 2025 to align with or exceed the 15-year average of $300 million in transactions.

Ercan further noted that fluctuating exchange rates and a strong tourism recovery since international borders reopened have attracted foreign investors. Although some markets may see a temporary easing of occupancy, the industry is moving beyond recovery toward sustainable growth.

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