Thailand emerges as specialised investor in Australia’s hotel segment

Our latest Insight, Foreign Investment in the Australian Property Market – December 2025, is out now – highlighting evolving global capital trends and policy impacts shaping commercial real estate in Australia.

The Insight showcases Thailand’s clear focus on Australia’s hospitality sector over the past financial year and its strategic intent to capture long-term value in premium hospitality assets. Thailand has committed AUD$376 million to hotel assets in Australia during FY25, emerging as a specialised investor in the market and highlighting its confidence in Australia’s tourism-driven markets.

“This niche approach contrasts with broader diversification strategies seen among other Asian investors, positioning Thailand as a targeted player in Australia’s luxury and full-service hotel segment,” said James Ruben, National Director, Specialised Assets at M3 Property.

During FY25, Thailand’s key acquisitions in Australia’s hotels sector included Park Hyatt Melbourne (AUD$205M) by KS Hotels, Hilton Adelaide (AUD$110M) by Amora Hotels & Resorts, and Vibe Hotel Gold Coast (AUD$61M) by KS Hotels.

“Thailand’s exclusive hotel investment signal rising interest in tourism-related assets, presenting opportunities for developers in this segment,” said Mr Ruben.

Overall, foreign investment into the Australian property market eased during FY25, according to the report. Total cross-border investment volumes reached approximately AUD$8.632 billion, marking a slight decline from FY24 levels of AUD$10.52 billion but reflecting sustained global confidence in the market.

“This moderation in capital flows occurred despite improving domestic conditions, with three cash rate cuts in 2025 and a softer interest rate environment beginning to support investor sentiment. However, global macroeconomic uncertainty continues to influence investment strategies,” said Mr Ruben.

The United States remained the largest foreign investor into Australian markets in FY25, contributing approximately AUD$3.756 billion – an increase from AUD$3.301 billion recorded for FY24. Conversely, Japan and Singapore reduced their investment volumes, while Canada significantly increased its exposure from AUD$671 million in 2024 to AUD$1.88 billion.

China, including Hong Kong SAR, contributed significantly to Australia’s foreign investment in FY25 with a total volume of $1.047 billion, making it the third-largest source of investment. Hong Kong investors contributed most of this investment, but Mainland China’s share of the investment, while still modest, increased slightly from AUD$112 million to AUD$119 million, suggesting a cautious re-engagement with the market.

“These movements reflect a recalibration of foreign investor priorities, with North American and Asian investors selectively targeting sectors such as industrial, mixed-use, and development sites amid Australia’s stabilising economic outlook,” said Mr Ruben.

According to the report, tax impacts are a factor driving the slight decline in foreign investment.

View the full report at the link below

Foreign Investment in the Australian Property Market – December 2025