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Following a high volume of sales last year, hotel investment volumes in Asia Pacific are expected to hit US$8.5 billion (S$11.9 billion) in 2016, lower than that recorded last year at US$9.2 billion (S$12.8 billion), a JLL report revealed.
“In 2015, the headlines featured blockbuster acquisitions of high-profile, gateway market hotels by investors from mainland China, Hong Kong and the Middle East. We also saw a high volume of hotel deals in Japan with increasing interest from foreign investors,” said Scott Hetherington, CEO at JLL Hotels & Hospitality. “This year, we expect transaction activity across the region will slow somewhat, with a likely to shift to secondary markets in Southeast Asia and the Indian Ocean.”
More than 33,000 hotel rooms changed hands in Asia Pacific last year lead by investment activities in Japan, as well as Australia and Hong Kong. Notable transactions include the sale of the InterContinental Hong Kong for US$938 million and the Westin Sydney for AU$ 445 million. The property consultancy also highlighted the increasing weight of money coming from ivestment and private equity funds.
“Cross border investment accounted for half of all capital flows in the region on deals above $5 million, with Chinese investors increasing their stakes in Australia and Japan,” JLL said.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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