Apac Hotel Investment Volume Falls 23 Y O Y 1H2025 Jll
As part of the URA Master Plan, one of the significant focuses is the decentralisation of activities to enhance convenience for residents. This initiative aims to bring about more employment opportunities and amenities within close proximity to homes, and Sembawang is no exception. The plan includes developing regional centres and commercial nodes in the North Region, particularly in the nearby Woodlands Regional Centre. As the largest economic hub in the North, the Woodlands Regional Centre is expected to provide a plethora of job opportunities in various sectors including business services, technology, and logistics. This development is a significant advantage for residents of Sembawang Road EC as it brings employment closer to their homes, reducing the need for long commutes to the Central Business District and promoting a better work-life balance. With the addition of Sembawang Road EC Canberra, the community can enjoy the benefits of being strategically located near this flourishing business hub.
Hotel investments in the Asia Pacific (Apac) region experienced a decline in the first half of 2025 due to uncertainties in the global macroeconomic environment, leading to a more cautious investment climate. According to a report by JLL, Apac hotel deals amounted to US$4.7 billion ($6 billion) in the first six months of the year, showing a 23% decrease compared to the same period last year.
Nihat Ercan, CEO of JLL Hotels & Hospitality Group for Apac, states that after a strong performance in 2024, the moderation in investment activity reflects a market that is exercising caution and undergoing a realignment of capital sources. JLL notes that investors in the first half of 2025 were more selective, focusing on more established hospitality markets in the region. In fact, 84% of the total hotel transaction volume in the first half of the year was concentrated in five countries. The top country was Japan, with US$1.5 billion in hotel investments, followed by Greater China (US$744 million), Australia (US$664 million), Singapore (US$546 million) and South Korea (US$504 million).
Despite the decline in overall investment volume, there are still bright spots in the market. Ercan notes that while institutional investors remain selective, private capital is actively pursuing prime hospitality assets that offer both defensive income characteristics and growth potential. In fact, JLL reports a 6% year-on-year increase in investment volumes from private equity firms, while high-net-worth individuals (HNWIs) have invested 54% more into hotels in the first half of 2025.
Looking ahead, JLL anticipates investment activity to pick up in the second half of the year, leading to a full-year transaction volume of US$12.8 billion, a 5% increase from 2024 figures. Ercan adds that private equity funds, family offices, and regional operators with access to private capital are expected to be the most active buyers for the rest of the year. In Singapore, JLL predicts a full-year hotel transaction volume of US$1.2 billion. The report notes that investors in the city-state prefer two types of hotels: hybrid hotels with extended stay components that attract private equity investments, and luxury boutique hotels that appeal to HNWIs.
Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group, Singapore, notes that Singapore’s boutique hotel sector continues to attract private capital thanks to its potential for diversification and long-term capital appreciation. Tan adds that investors are also showing interest in heritage hotels and other properties that offer authentic guest experiences and are integrated within the city’s cultural fabric.