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Australia, HK dominate hotel investment in Asia Pacific
Hotel investment in the Asia Pacific region is dominated by Australia and Hong Kong, especially in gateway cities, which provide long-term tourism growth potential, a recent report says.
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This picture taken on February 21, 2017 shows new high rise hotels looming over a French-style opera house in downtown Ho Chi Minh City. (AFP/Hoang Dinh Nam)
H
otel investment in the Asia Pacific region is dominated by Australia and Hong Kong, especially in gateway cities, which provide long-term tourism potential, a recent report says.
Real estate consultant Jones Lang LaSalle (JLL) said hotel investors remain focused on gateway cities such as Hong Kong, Singapore, Sydney and Melbourne as they wanted to tap into the potential of tourism and trading while the long-term demand and supply remained steady.
“Hong Kong and Australia have been the standout markets in the region in terms of inbound investment, amounting to just under US$1.5 billion altogether, driven by robust tourism growth and solid trading performance driving investment activity,” Frank Sorgiovanni, Head of Research Asia Pacific at JLL Hotels & Hospitality Group wrote in a statement.
In total, hotel investments in the region in the first half of 2017 were over US$2.9 billion, with a shortage of investment grade hotels on the market compared to the previous few years.
All in all, JLL recorded 28 hotel deals across six countries in the region amounting to over 5,000 rooms, with the average price per room recorded at US$486,600.
“Opportunities to acquire hotels in many gateway Asian destinations are limited and investors continue to seek alternative investments in emerging markets such as Vietnam or Cambodia, where arrival growth is heavily supported by Chinese tourism,” he added. (dis/ags)
