The Asia Pacific hospitality market is entering a phase of stabilisation in 2025, with investors continuing to target high-liquidity markets across the region, according to Colliers’ Asia Pacific Hospitality Insights May 2025 report.
Building on the momentum of 2024, the sector is transitioning from a rapid post-pandemic recovery to more deliberate, performance-driven growth. This evolution reflects increasing investor confidence in the long-term fundamentals of hospitality assets, particularly in mature, high-performing markets.
“The rapid rebound of recent years has matured into a more measured pace, with a focus on building long-term value,” said Govinda Singh, Executive Director, APAC Capital Markets – Hotels & Hospitality and Advisory at Colliers. “As high-performing markets begin to stabilise, the narrative is evolving from recovery to a new norm.”
Despite a 19% decline in deal volumes in the first quarter of 2025 and yields rising to 5.4%, hotel performance across the region remained resilient, helping to sustain investor interest. Singh noted that while Q1 is traditionally a quieter period for transactions, ongoing geopolitical uncertainty also contributed to a cautious, wait-and-see approach among investors.
However, as market conditions continue to settle and pressure to deploy capital grows, Colliers anticipates a resurgence in transaction activity in the second half of the year.
