According to the JLL Hotels & Hospitality Group-Hotel Investment Outlook 2016 released report, Asia Pacific hotel investment volume is expected to reach $8,5 billion in 2016.
In 2015 more than 33,000 hotel rooms changed hands in Asia Pacific, adding up to a total of US$9.2 billion in transactions. Leading the pack in terms of investment activity was Japan, followed by Australia and Hong Kong. The blockbuster transactions that characterised as the year included the sale of the InterContinental Hong Kong for $938 million and the Westin Sydney for AUD 445m, as well as an increasing weight of money coming from investment 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.
Scott Hetherington, CEO, JLL Hotels & Hospitality, Asia, says: “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. 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.”