Asian capital continues to invest in European hospitality assets as Singapore-listed funds prioritise gateway city locations, serviced living, and lifestyle brands.
In December 2025 City Developments Limited (CDL) acquired the 706-room Holiday Inn on High Street Kensington in London. “It’s our seventh hotel in the West End of London. Why? Because it’s proven to be the right location with very strong cashflow and strong capital value appreciation over time,” said David Ling, head of hospitality investment and asset management, CDL.
London cluster
The acquisition for £280 million, or £396,600 per room, was “a once-in-a-lifetime chance to secure an ultra-prime freehold site in central London” and the latest addition to CDL’s unique central London portfolio of over 3,000 hotel rooms.
CDL also owns three hotels in central Paris, including the Hilton Paris Opera, purchased from Blackstone for €240 million in 2024. “Again, it’s given us a good yield at a good entry price,” said Ling.
Trophy hunters
Asian capital has a reputation for gravitating towards trophy assets and not compromising on location. Ling was in no hurry to dispel the stereotype. He commented: “We love trophy assets. I’ll give you just one example from years ago. We bought The Plaza, New York, from the current US president Donald Trump and ten years later we sold it for double the price we paid. So long as they make investment sense, we are most definitely trophy hunters.”
The Plaza, one of the world’s most iconic hotels, is perhaps best known for its prominent role in the film Home Alone 2, in which Trump himself makes a fleeting appearance.
The 1995 acquisition by CDL was a watershed moment in opportunistic deal-making. While then-owner Trump faced insolvency and Chapter 11 proceedings, CDL proved that it had a strong enough balance sheet to capitalise on opportunities without the need for extensive borrowing. CDL went on to buy up more trophy hotels in Los Angeles and London.
Look east
Returning to the present, Ling signalled a new openness to look at locations beyond western Europe: “I’ve bid on a project in Warsaw and I’ve also looked at the Czech Republic. They are great places to invest. It’s driven by where the opportunities are and the risk appetite. We are not glued to specifics.”
Warsaw’s hotel performance in 2025 delivered one of the strongest years of the past decade, say an HVS research paper. However, eastern Europe is not on the radar of another Singapore-listed fund, just yet.
Limin Lou, head of investment lodging Europe at CapitaLand Investment, explained: “We are not yet in eastern Europe. From the investment perspective, we think about the downside risk. Do I have someone to call, someone that can help us to solve a problem if one day we get into trouble in that country? If the answer is no, then we're not ready to get into that market.”
Asset-light acceleration
CapitaLand is very well represented in the UK and western Europe and “those are the areas where we want to go deeper,” she said.
CapitaLand has US$100 billion in funds under management across all its asset classes, with US$3.16 billion allocated to European hospitality assets. CapitaLand’s wholly owned subsidiary, The Ascott Limited, operates hotels and serviced apartments in over 230 cities across the world.
Ascott is transitioning from an asset-heavy to asset-light business model and has been “really successful in the last five years,” said Lou. Ascott signed 19,000 units across 102 properties in 2025, a 27 percent year‑on‑year increase, driven by asset‑light franchise and management agreements.
Fun and funky
Ascott’s presence is greatest in Asia-Pacific, with Vietnam being one of its fastest‑growing individual markets. Another growth focus is Europe, especially for the core brand Citadines, the affordable living concept lyf, and the five-star Crest Collection.
Lou described the lyf brand as “very fun and funky.” There are currently 40 lyf properties worldwide, including Vienna, Paris, Frankfurt, London, Manchester, with another opening soon in Glasgow.
Lou said that lyf offers a mix of hotel rooms, apartments and connected rooms with strong investor appeal because connected rooms can turn into suites or back into distinct rooms depending on demand.
In addition to expanding the Ascott Limited portfolio in Europe, Limin said: “We want to do more value-add deals, grow more third-party managed assets, and team with different operators and brands.”
A two-way bridge
Several European hospitality concepts have been successfully transported back to Asia. Citadines, the pioneer of aparthotels, was founded in Paris in 1984 and originally owned and operated by Accor. Since being acquired by Ascott in 2004, the brand has rapidly expanded, shifting its centre of gravity towards Asia-Pacific.
Lou explained: “Citadines is really a very profitable business model that is perfect for travelling families. If you're struggling to find connected rooms, an apartment is the perfect alternative solution. And if you don't want to have to eat in a restaurant every day during your stay, it's a very nice choice.”
David Ling at CDL added that he has also been inspired by European-based lifestyle brands. Moxy is a Marriott International brand developed in partnership with Amsterdam-based Vastint Hospitality, and launched first in Europe, at Milan Malpensa airport in 2014.
Having stayed in several Moxy hotels, Ling liked the product so much that he was personally behind the creation of the biggest Moxy in East Asia. A joint venture between CapitaLand and CDL, the 470-room Moxy Singapore Clarke Quay opened in 2024.
All quotes taken from ‘Inbound investment: The next wave of Asian capital into EMEA - Powered by IHIF Asia’ The panel at IHIF EMEA 2026 in Berlin was moderated by Arlette Mensing, director, Colliers.