Asia Pacific hotel transactions to reach $3.5 billion in 2013
Hotel transactions in Asia – Pacific are projected to reach USD 3.5 billion in volume this year, on the back of strong investment sentiment to buy hotel assets in the region, Jones Lang LaSalle’s latest Hotel Investment Outlook report has revealed.
The report says that while Australia and Japan will see the lion’s share of investment dollars this year, India will see investor appetite for acquisition. New Delhi and Mumbai appear in the global top ten destinations that will witness acquisition momentum.
“Investment benchmarks are being established in India. The dynamics in 2013 will favour both buyers and developers with a slowdown in development activity and more opportunities to acquire,” the report said. Investor appetite for acquisitions is strongest for Phuket, Ho Chi Minh City, Auckland, Osaka and Tokyo, while Asia Pacific hotel markets continue to rank among the highest globally for development sentiment. More investors will look to acquire or develop Asia Pacific hotel assets in 2013 as they seek to secure a foothold in the region, according to Jones Lang LaSalle’s 2012 year-end Hotel Investor Sentiment Survey.
This projection represents an improvement on 2012 volumes, where hotel sales activity dropped 30 per cent on the previous year to USD 3.3 billion. Despite strong investor sentiment, a low level of established product for sale will widen the pricing gap between buyers and sellers and slow the pace of transaction volumes. In light of this, investors will continue to consider new developments in order to achieve sufficient scale across the region, as per a report in the Business Standard by Shivani Shinde. Hotel supply in Asia is projected to increase by an average of 5.5 per cent per annum across 23 major markets over the next two years. Source: HBI
