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The Asia Pacific region saw just under 11,000 keys traded during the first half of 2015, on par with the 10,772 keys traded in 1H 2014, revealed JLL in a report.
But when put in US dollar terms, a moderation in total sales activity was realised, dropping by 14.9 percent to US$3.2 billion.
JLL attributed the result to the noticeable reduction in marketable hotels within Asia as well as the geographic shift of investment focus to recovering and emerging markets within Americas and parts of Europe.
Notably, total transaction volume of closed deals across the region in 1H 2015 was led by Hong Kong (US$1.3 billion), followed by Japan (US$569.2 million), Mainland China (US$112 million), Thailand (US$84.8 million) and Malaysia (US$56.9 million).
The report noted that the Australian market recorded robust sales activity in 1H 2015, which reached US$687.4 million or 21.2 percent of the total investment sales within the region (up from 1H 2014’s 17.9 percent).
“Two large single asset sales in Australia were exchanged in 1H 2015, however as these deals closed in July, the transactions will ultimately fall into 2H 2015 volume flow,” it said.
Meanwhile, China’s continued buying preference remains outbound-focused.
In 2015, JLL expects Chinese capital to represent around US$5 billion in global hotel investment, making it among the top-three exporters of capital globally along with the Middle East and the US.
By 2020, JLL expects Chinese outbound capital to reach by up to US$7 billion annually.
JLL also revealed that the top 10 closed transaction in 1H 2015 amounted to just above US$2 billion, with Hong Kong accounting for major weight to the rankings while “Australia’s presence in the list of large-scale deals fell along with Japan when compared to the same period last year.”
Nonetheless, JLL said it remains confident of hotel investments achieving the full year projection of US$8.5 billion across the Asia Pacific this year, given that over US$3.5 billion of hotels are currently under due diligence or exchanged across the region.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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