One successful example highlighted in JLL’s research is the HMA signed between Australian investment manager Salter Brothers and hotels giant Accor to manage a portfolio of 11 hotels in Australia.

The agreement incorporates clear, defined ESG targets, including green energy procurement, waste reduction, and staff diversity, all of which are tied to tangible commercial outcomes.

Without a unified global standard on ESG for the hotels sector, HMAs remain the best option for owners and operators to agree and commit on sustainability targets, Park says.

Hotels, which operate around the clock, have the highest energy intensity at 293 kWh/sqm compared to sectors such as office (181 kWh/sqm), retail (152 kWh/sqm) and residential (124 kWh/sqm), according to Global Real Estate Sustainability Benchmark (GRESB) data.

Yet there are few investors in Asia acting on the environmental and social aspects of sustainability on a larger scale, with most focused on meeting compliance standards, according to Nijnens.

“Industry reporting standards, such as the Uniform System of Accounts for the Lodging Industry (USALI), are evolving in the next two years to incorporate sustainability-focused metrics,” says Nijnens. “The transparency and urgency will increase, giving owners a real opportunity to align with their operators before the pressure mounts.”