Asia Pacific retail and hospitality market trends

Asia is transitioning from a primary target for global retailers into a region that provides significant lessons for global business models. An increasingly affluent consumer class is reshaping global demand, shifting the focus toward what the region can teach the rest of the world.

In the Asia Pacific region, retail strategies are moving toward prioritizing prime locations and upgrading existing stores rather than pursuing aggressive expansion. While demand for high-visibility spaces remains strong, companies are adopting more cautious approaches to opening new outlets. Specific regional trends include high rental growth in Tokyo’s Ginza district and concentrated rental growth in tourist areas of Taipei, while Hong Kong faces a milder recovery due to high operating costs and online sales shifts.

The hospitality sector has also seen significant activity, with Asia Pacific hotel transactions reaching USD 17.0 billion in 2025, a 51.9% increase from the prior year. Investors are increasingly favoring the acquisition of existing assets for refurbishment or conversion over new developments, driven by high financing, labor, and construction costs. Although luxury asset transaction volumes declined, they maintained strong pricing power, with average luxury pricing increasing by 24% to approximately USD 585,000 per key.