Hotel investments in Asia to top seven billion dollars this year
February 7th, 2007 - Category: Hotel, Real EstateInvestment in the Asia Pacific hotel sector is expected to exceed seven billion US dollars this year, up 33 percent from 5.25 billion dollars in 2006, an industry group has announced.
New markets such as China, India and Vietnam are expected to see increasing investor interest, while Singapore, Hong Kong and Tokyo will remain favoured destinations, hotel investment services firm Jones LangLasalle Hotels said in an industry outlook.
Middle East interestm which saw a resurgence in 2006, is expected to continue in the regional market this year, according to the report released late Tuesday.
“We expect to see more transactions in more markets throughout 2007 as investor interest spreads into new markets, especially China, India and Vietnam,” said Scott Hetherington, Jones LangLasalle Hotels managing director for Asia
While domestic players accounted for about half of total transactions in the industry in 2006, outsiders are expected to figure more largely.
“US opportunity funds, over the last few years,, have become owners of a significant stock of Asian hotel assets and we are beginning to see some churn from these players,” Hetherington said, adding this should continue in 2007.
“There is resurgence of interest from the Middle East … and we expect to see more investments by Middle Eastern investors, and to a smaller extent, European investors during 2007 as the trend of offshore investment and global diversification gains pace.”
In 2006, Singapore, Hong Kong and Japan were the most favoured investment destinations, although high transaction volumes were also recorded in China, Thailand, Taiwan, Australia and New Zealand.
Last year’s investment in the hotel industry was more than double levels in 2005 and 73 percent higher than 2004 figures, the company said.
Source: AFP
