HONG KONG: Asia Pacific’s hotel investment market recorded an impressive $9.2 billion worth of transactions back in 2013, led by the resurgence of Japan and big-ticket trophy deals in Singapore and Shanghai.
According to a report from JLL, however, 2014 witnessed a moderation in sales activity across the region, falling by 18% to just above $7.5 billion with over 34,000 keys traded at an average rate of $221,000 per key. This was largely the result of reduced sales volume in Asia, falling by $2.8 billion from 2013.
In stark contrast to Asia, 2014 proved to be an extraordinary year for Australia. Transactions volumes reached a record $2.2 billion (up 86% y-o-y). Activity in Asia was dominated by Japan ($2.3 billion), Mainland China ($1.4 billion), Thailand ($338 million) and Malaysia ($292 million).
This overall decline in investment activity in Asia partly reflected a geographic shift of investment focus to recovering and emerging markets (such as the Americas and Western Europe) by Asian capital, rather than a diminishing interest in local hospitality assets.
The lack of investment opportunities in Asia compared to 2013 was also a key factor in reduced volumes last year. Total transaction volume in Asia Pacific totalled $3.7 billion in H2 2014, a 34% decline on the same period in 2013.
