Confirmed hotel transaction volume in Asia reached US$1.3 billion in the first half of 2013, up 85% from the first half of 2012, according to Jones Lang Lasalle's Hotels & Hospitality Group.
The group's latest report shows solid growth in sales activity, marking the region's strongest first half since 2008.
The established tourism markets of Singapore, Hong Kong and Tokyo, coupled with opportunistic deals in emerging markets like Thailand and Maldives, drove growth in the region.
"Throughout Asia, we are also aware of circa $400 million in hotel transaction volume to be confirmed soon and a further $1 billion in due diligence," said Mike Batchelor, managing director for investment sales at Jones Lang LaSalle's Hotels & Hospitality Group.
Japan's hotel market received 37% of the region's investment, fuelled by strong domestic, corporate and leisure demand as the market fundamentals were seen to have rallied since the 2011 earthquake.
Close behind, Singapore accounted for 34% of regional transactions, largely due to the sale of Park Hotel Clarke Quay for $238 million.
Despite a somewhat unpredictable environment, Thailand continued to consolidate its position as one of Asia's hotel investment hot spots, most notably with the sale of Laguna Beach Resort in Phuket in the first quarter of 2013.
The first half saw a growing number of transactions, with improved investor sentiment translating to increased sales.
Furthermore, the divergence between vendor and purchaser expectations that served to restrict investment activity in 2012 has narrowed this year.
The report identifies funds, institutions and large corporations looking to restructure their portfolios as the most prominent sellers of investment-grade hotels, while REITs, hotel operators and institutional investors were the most active buyer groups.
But despite regional growth and strong investor appetite, the limited pipeline of open-market listings throughout Southeast Asia has crimped sales activity.
The availability of investment-grade assets in key cities and the growing insistence of sellers to close deals through transparent processes will dictate the overall landscape in the region.