Raini Hamdi, Singapore (2006-05-18)
THIS morning's Asia-Pacific Hotel Investment Conference in Singapore organised by Jones Lang LaSalle Hotels ended on a high note, with the mood for hotel investment in the region clearly upbeat and owners reportedly happier with their hotels' current performance than ever.
Jones Lang LaSalle Hotels' outlook 2006 of the Asia hotel trading market cycle shows not one Asian market where RevPAR (revenue per available room) is falling or declining/slowing. RevPAR is rising in every single Asian market, particular in Tianjin, Shanghai, Bangalore, Delhi and Mumbai, and even in the more difficult markets such as Jakarta, Bali and Kuala Lumpur.
Among major trends in Asia are the increasing popularity of branded residential real estate, a pick-up in development in secondary-tier markets in China and more funds from the Middle East into Asia, according to Jones Lang LaSalle Hotels' managing director Asia, Mr Scott Hetherington,
Asia-Pacific chiefs of the global hotel chains, when asked during a panel what the key frustrations of owners now were, were cheerful in answers.
Marco Polo Hotels' president, Mr Jeffrey Flowers, said: "There are no major complains, business is pretty good, so there are many pretty happy campers out there. There's always just that question of how we can do a little better."
InterContinental Hotels Group CEO Asia-Pacific, Mr Patrick Imbardelli said not all owners were created equal. Some are very hands-on and he noticed a trend where owners were taking a longer-term view of their assets and relied on the chain to come up with new strategic options for various spaces of the hotel to maximise the ROI years down the road.
- Full report on Asia's hotel investment climate in TTG Asia next issue