HOTEL transaction volumes within Asia reached US$1.3 billion in 1H2013, representing an 85 per cent year-on-year increase over 2012, or the strongest first half since 1H2008.
According to Jones Lang LaSalle’s (JLL) Hotels & Hospitality Group’s Asia Hotel Investment (H12013) report, the surge in sales activity is indicative of positive market sentiment.
Strong investment in the Singapore, Hong Kong and Tokyo markets and emerging Thailand and Maldives markets were the main engines for growth in the first half of the year.
Japan received 37 per cent of regional investment as the market continues to bounce back from the 2011 earthquake, while Singapore grabbed 34 per cent of investment, mostly due to the sale of Park Hotel Clarke Quay (TTG Asia e-Daily, April 9, 2013), and Thailand remained a regional investment hotspot, with the sale of Laguna Beach Resort in Q1.
Mike Batchelor, managing director investment sales, hotels and hospitality, JLL Hotels & Hospitality Group, said: “During the first half of 2013, we have seen a growing number of transactions, including those at the portfolio level, and improved investor sentiment translate to increased sales.
“The divergence between vendor and purchaser expectations that served to restrict investment activity in 2012, has improved this year leading to a number of landmark transactions in the first half.”
He added: “Looking forward, the availability of investment-grade assets in key cities and the growing insistence of sellers to close deals through transparent processes will dictate the overall investment landscape in the region as investors increasingly look to emerging markets.
“As superannuation and other forms of capital continue to flow into REITS, we are likely to see their continued dominance in the market. This, coupled, with the growing appetite of Asian private investors, owner operators and private equity players, could result in transaction volumes nearing US$3.5 billion by the end of 2013.”