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Asia Pacific saw hotel transaction volumes increase by more than 19 percent year-on-year to US$9.2 billion in 2015 as more than 33,000 keys were traded across the region, revealed a JLL report.
Japan (US$2.5 billion) once again emerged as a standout market, “with sales undertaken by a suite of domestic investors in addition to increased interest from offshore buyers.” It was closely followed by Hong Kong and Australia, with US$2.2 billion and US$2.1 billion, respectively.
In terms of annual volumes, Hong Kong posted “the largest increase year-on-year (US$2.2 billion, up 1,045 percent) – primarily due to the $938 million sale of the InterContinental Hong Kong, the largest single asset sale in Asia Pacific – followed by New Zealand (US$165.4 million, up 454 percent) and India (US$265.6 million, up 327 percent),” said the report.
Although the Australian market recorded robust sales activity in 2015, at more than US$2 billion, it was actually down 15 percent from 2014 due to the appreciation of the US dollar.
JLL noted that a substantial level of Chinese capital “continue to seek offshore opportunities with the majority of these groups being large private conglomerates with existing real estate and development exposure.”
In fact, global outbound Chinese investment into hotels exceeded US$5.3 billion last year.
“Overall, cross border investors accounted for half of all capital flow regionally (deals above US$5 million),” it said.
“With 156 deals, comprising single-asset and portfolio transactions, recorded across 11 countries in 2015, offshore investors have dominated larger asset sales – particularly into Australia – with a higher average deal size of almost US$70 million.”
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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