Rahul Ghai, Managing Director, Asia featured in HM Magazine’s 2026 Australasian Development Outlook
Excerpt from HM Magazine | June 2026
Rahul Ghai, Managing Director, Asia
The current market environment is marked by increased borrowing expenses, worldwide unpredictability, and evolving geopolitical factors. According to JLL, it projects APAC hotel investment volumes to reach around US$13.3 billion in 2026, an increase from US$11.9 billion in 2025, with hotels securing roughly 8% of global CRE investment that year.
The sector remains inherently cyclical, and as capital becomes more expensive, institutional fund activity has moderated. Business travel is likely to be the first segment to contract under such conditions, creating a ripple effect across occupancy and rate performance.
These same constraints reinforce hotelsʼ fundamental appeal as real assets. Rising construction costs, planning complexities and financing limit new supply, creating a disciplined pipeline.
Salter Brothersʼ vertically integrated model provides a distinct competitive advantage. By aligning asset, development and revenue management in-house, they unlock genuine value-add opportunities, ensuring operational efficiency, sharper execution and superior investment outcomes.
Several key trends are redefining the development and investment landscape across the region:
CONVERSION-LED GROWTH
The shift away from greenfield development toward refurbishment and conversion strategies is accelerating. Rising costs and tighter feasibility margins are driving investors toward repositioning existing assets, particularly in the upscale segment where targeted capital investment can deliver better returns. This is an area where deep operational expertise and design-led thinking are critical. Conversion strategies also align with the growing institutional focus on embodied carbon and adaptive reuse, strengthening their ESG profile relative to greenfield alternatives.
PREMIUMISATION AND PERFORMANCE POLARISATION
A clear divergence is emerging between mid-market and high-end assets. Luxury and ultra-luxury hotels are demonstrating sharper performance resilience, supported in part by strong domestic demand across Asia. This premiumisation trend is reshaping the competitive landscape, with high-net-worth travellers seeking differentiated experience-led offerings.
THE RISE OF WELLNESS
What’s happening right now is more than just an industry trend; it’s a fundamental shift in how people value hotels. Hotels are no longer just places to sleep. They are becoming more of a wellness experience platform. The experience is now the core demand driver. It’s no longer confined to real estate or room inventory. It’s about wellness and intentionally designing reasons for people to choose you, return to you, and advocate for you. The most valuable hotel brands today aren’t just selling rooms; they’re creating cultural relevance and
emotional connection. This trend is particularly compelling in the ultra-high-net-worth segment, where demand for wellness-oriented living environments is expanding rapidly and attracting sustained capital interest.
SEGMENTS AND LOCATIONS OF FOCUS
Salter Brothers continues to prioritise high-performing gateway markets alongside select high-growth regional hubs.
In Australia, our strategic focus includes Sydney, Melbourne, and key destinations across Queensland underpinned by strong tourism fundamentals, infrastructure investment and diverse demand drivers. The new Sydney airport is anticipated to generate substantial economic uplift in both tourism and business activity across the broader Sydney area.
In the Asia Pacific region, Salter Brothers operates established offices in Singapore and Japan and is committed to broadening its market footprint by leveraging the experience and expertise from its Australian operations.
Click to read the feature here