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Singapore is among the cities favoured by hotel investors in the Asia Pacific (APAC) region during 1H 2017, reported the Singapore Business Review, citing a research from JLL.
The property consultancy revealed that despite a lack of availability of investment grade hotels as compared to the past few years, hotel investment in APAC during the said period reached slightly over US$2.9 billion.
By number, JLL registered 28 hotel transaction across six countries with a total of more than 5,000 rooms, translating to an average price of US$486,600 (S$671,848) per key.
Aside from Singapore, the other gateway cities on the radar of hotel investors in the region were Hong Kong, Sydney and Melbourne.
The property consultancy noted that Asian-based investors are still pumping cash in hotels located at Australian cities, with several assets there entering the market recently, especially in Sydney and Melbourne. Most of the hotel deals occurred in the latter, except for the sale of the InterContinental Sydney Double Bay for US$104 million (S$143.59 million) — a record price for a suburban hotel in the said city.
“Hotel transaction activity is expected to continue in Australia throughout the year given the low-interest rate environment, sound economic growth outlook and weaker local currency,” said Frank Sorgiovanni, JLL Hotels & Hospitality Group’s Research Head for Asia Pacific.
“However, opportunities to acquire hotels in many gateway Asian destinations is limited and investors continue to seek alternative investment in emerging markets such as Vietnam or Cambodia, where arrivals’ growth is strongly supported by Chinese tourism.
This article was edited by Denise Djong.
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