Global hospitality capital is rotating toward Asia Pacific and the Gulf, with European investment volumes holding flat at roughly €25bn in 2025 rather than retreating, Robert Walters, chief investment officer at Global Asset Solutions, told attendees at IHIF Asia.

"What we're seeing is a fundamental repositioning of global capital towards Asia and the Gulf, driven by the search for diversification, scale and resilient long-term returns," Walters said during a panel chaired by Marcena Capital CEO Dhruv Sharma.

Why the rotation now

Walters attributed the move to supply-side pressure in established markets. Arrivals into Northeast and Southeast Asia have climbed about 20% to 22%, and yield compression on trophy assets in gateway cities is pushing investors toward secondary markets in Thailand, Vietnam and Indonesia.

Japan, China, South Korea, Singapore and Australia remain the destinations drawing the largest pools of overseas capital, Walters said, but added: "The opportunity is increasingly in the markets with diverse local dynamics at play, emphasizing the need for strong local and regional partnerships."

Ras Al Khaimah leads the Gulf pitch

His Highness Sheikh Saqer bin Omar Al Qasimi used the session to walk through Ras Al Khaimah's master-planning model, anchored by Marjan Island, Marjan Beach and RAK Central. Foreign investors now account for 78% of Marjan's investor base, and the $5.7 billion Wynn Marjan Island development, scheduled to open in September 2027, is positioned as the catalyst asset.

Sheikh Saqer said Marjan typically commits its own capital before approaching private developers, and treats buyers of standalone land plots as long-term partners in building brand identity. Marjan's underwriting targets yields of about 18% on hospitality deals and more than 30% on residential.

What does the ruling change for operators and investors?

Two practical questions dominated the panel: how to govern cross-border deals, and how to price ESG.

On governance, Walters pointed to Singapore as the preferred jurisdiction for partnership contracts because of its stable legal framework, and urged investors to fix terms around reserved matters — capex calls, refinancing triggers and brand swaps — early. Misalignment on those points, he argued, is the most common source of conflict between international capital and local operators.

On ESG, Walters cited Cushman & Wakefield research suggesting eco-compliance can add roughly 5% to an asset's value. Two-thirds of investors polled, however, said rising construction costs are slowing their push for accreditation such as BREEAM.

Country-level reads from the Global Asset Solutions outlook

• Vietnam and South Korea are flagged as the two standout growth stories for 2026, with Vietnam's broad demand gains and affordability offset by a heavy pipeline that could moderate growth after 2027.
• India is expected to keep pricing resilient through 2026 and into 2027 despite a wave of new brands.
• Japan recorded occupancy and ADR growth in four of five submarkets, with operators shifting focus to revenue and profit optimization amid persistent high-end supply shortages.
• China remains the laggard: only one in five submarkets is growing, about two-thirds are seeing negative occupancy growth, and RevPAR is forecast to expand just 1% to 1.5% in 2026. Chengdu alone faces new room supply equal to 14% to 15% of existing stock.
• Thailand is back in growth mode, though older upscale Bangkok hotels could feel pressure from new builds.
• Malaysia rate growth is expected to flatten for the rest of the year.
• Maldives absorbed April-May Middle East disruption with 45% to 50% low-season occupancy and is still expected to hit original targets across its 200-plus resorts.
• Singapore and Australia continue to attract capital on stability, though individual Australian markets are softening as new supply lands.

The cash-flow warning

Closing the session, Sheikh Saqer cautioned against underwriting to short-term value or running projects on cash flows tight enough to buckle under a single demand shock — discipline he framed as the difference between capturing the Asia-Gulf rotation and getting caught in it.

Expect the Vietnam-South Korea-Ras Al Khaimah corridor to dominate deal pipelines into 2027, with the next IHIF cycle testing whether that capital holds discipline on governance terms or chases headline yields.