Asia Pacific Hotel Sales & Investment

Housing Investment Consultancy
Hotel Sales & Investment

January 2017

Due to tight cap rates in core Tokyo, Hong Kong, Singapore, Sydney and Melbourne transactions, we began to see increases in market share for traditionally non-core assets as investors searched for yield farther afield.

65.7% of the transaction volume came from 3 countries: Japan, Australia and China, in descending order.

Properties in Japan represented 33.1% of all investment sales in Asia Pacific (APAC), with US$3.26 billion worth of transactions, and volumes increased by 5.8% YoY.

Australia had the second highest transaction volumes with US$1.66 billion, 16.8% of the region’s total volume. However, transaction volumes decreased by 31.5% YoY. 

China had the third highest transaction volumes with US$1.55 billion, representing 15.8% of the region’s total volume. This was an increase of 155.3% YoY in transaction volumes.

Cap rates on regional hotel real estate continued their long, gradual compression in 2016. Cap rates for prime Tokyo hotel property are now sub-4.0%, tighter than a year ago.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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