Asia Pacific Hotel Sales & Investment

We have seen a significant increase in transaction activity by high net worth individuals and the smaller private groups. There is a large pool of funds available for assets in good condition in affluent locations, particularly freehold stock.

April 2014

 
  • The total value of hotel investment sales increased by 49.8%, from US$1.49 billion in Q1/2013 to US$2.23 billion in Q1/2014.
  • The China hotel market contributed US$612 million or 27.4% of all investment sales in the reviewed quarter.
  • Singapore investors invested nearly US$798 million or 35.7% of all investment sales in Q1/2014.
  • Hotel investment sales in Hong Kong and Australia/New Zealand increased, with transaction volumes surging 613.3% and 117.1% respectively year-on-year (YoY).
  • Investment sales in Japan declined the most, with transaction volumes falling 27.1% YoY.
  • Investors will push more hotels onto the market in 1H/2014, looking to capitalise on improved market sentiment. Regional cap rates continue to soften, with yield expectations for prime assets ranging between 3.5% in Hong Kong and 9.0% in Ho Chi Minh City. These include Singapore (4.0%), Tokyo (4.5%), Seoul (5.0%), Bangkok, Kuala Lumpur and Shanghai (all 7.5%).
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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