Asia Pacific Hotel Sales & Investment

In Japan, Singapore and Australia, a large number of risk-averse investors are still focused on core markets and prime assets. However, opportunistic investors are growing in number (and spending power), driving increased investment in countries such as Thailand, Viet Nam and Indonesia.

January 2014

 
  • Total investment sales increased by 23.4%, from US$7.1 billion in 2012 to US$8.7 billion in 2013.
  • The Japanese market contributed US$2.05 billion or 23.5% of all investment sales in 2013.
  • Singapore investors delivered nearly US$1.96 billion or 22.4% of all investment sales in 2013.
  • Investment sales in Singapore and Japan increased, with transaction volumes surging 415.6% and 34.9% respectively year-on-year (YoY).
  • Investment sales in Hong Kong and Southeast Asia decreased the most, with transaction volumes falling 73.6% and 24.3% respectively YoY.
  • The cap rate treasury spread in the region remained relatively thin until the last quarter of 2013, when cap rates continued to compress at a rapid clip as treasury yields began to move up. An average yield of 5.2% for prime assets was recorded in 2013, 60 basis points lower than in 2012.

 

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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