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By Shabnam Muzammil:
Despite global economic uncertainties, Asia Pacific was the world’s fastest growing tourism market in 2012 with an over five percent increase in arrivals.
Thailand and Japan recorded recoveries while the markets in Cambodia, Laos and Myanmar are catching up. Meanwhile, Vietnam, Malaysia and Indonesia continue to strengthen their tourism sectors.
Overall, Asian hotels reported positive performance metrics last year, but at a slower pace than in 2011, according to CBRE Hotels and Research. Several countries like Indonesia and Japan posted strong RevPAR growth due to significant improvements in ADRs, while Thailand leveraged on its occupancy boost.
However, softer occupancy and ADRs caused other countries including China, India and Vietnam to record declines in RevPAR.
“The market has a large supply pipeline ahead with a concentration on upscale to luxury hotels. Singapore, Shanghai, Bali, Jakarta and Beijing will see the largest number of upscale and luxury rooms under construction. On the back of growing visitor numbers including intra-regional travel, we are confident the new supply will be absorbed with ease,” said Robert McIntosh, Executive Director at CBRE Hotels Asia Pacific.
Meanwhile, Japan’s hotel investment sales accounted for more than 40 percent of the region’s US$5.54 billion (S$6.86 billion) turnover last year.
Moving forward, hotel REITs particularly S-REITs are expected to boost acquisition activities to further expand their portfolio. While investors will remain keen on Southeast Asia hotels, limited properties available for sale will sustain the gap between buyers and sellers, the report added.
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@propertyguru.com.sg
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