Asia Pacific hotel investments cool in 1H2023: JLL
A research announcement by JLL, Asia Pacific (Apac) suggested that investment by hotel volumes declined by 51% in 1H2K23, significantly affected by macroeconomic tough situation and the hike in defaulted debts. “Coming off a high base in 2K22 and inspite of favourable market fundamentals, hotel investments abate to US$3.13 billion ($4.14 billion) in 1H2K23 versus US$6.41 billion during the same period last year,” the report indicates.
hotel transaction volumes In Singapore which sums up to whopping huge amount of US$30 million in 1H2K23, a 95% downward fall.
Parkroyal Hotel located on Kitchener Road which exchanged hands for US$388 million, UOL makes official announcement beginning of the month and is expected to accelerate the segment in the second half of the year. Midtown Properties, a unit of the Worldwide Hotels Group, purchased the hotel which located in Little India, JLL consulted the sale.
China also saw a drop in hotel portfolio amounts activity, by 76% y-o-y to US$300 million. Japan in contrast sustained robust hotel investments, growing 56% y-o-y to US$1.54 billion. hotel investments similarly in Australia and New Zealand fly, with volumes surging 189% y-o-y to US$820 million.
“We have observed the impact of a continued disconnect between the robust tourism demand and macroeconomic and geopolitical challenges in the first half of 2023, resulting in a gap between sellers’ pricing expectations and buyers’ access to capital,” says Nihat Ercan, CEO, Asia Pacific, JLL Hotels & Hospitality Group.
the muted investment volumes in 1H2K23 despite showing a shrink, the company affirms that the hotel industry has shown ”marginally improvement” in overall business appreciation performance, backed up by steep hike in median daily rates across the region’s hotels on top that the fact China only recently opened their borders. “Approaching 2024, we expect to see more specific opportunities emerge in some destinations across Apac, where prices have been adjusted downwards, enabling interested parties to reconsider,” Ercan adds.
It was being taken to attention that two other notable hotel transactions recently. In July, it advised Crystal Plaza Resorts on the sale of Amari Havodda Maldives resort to Thai hospitality combination Minor International Public and its financial partner, Abu Dhabi Fund Development. JLL announced in june the successful transaction of first hotel portfolio sale by Southeast Asia in 2K23 – Pullman Jakarta Central Park; and the ibis Saigon South and Capri by Fraser, both in Ho Chi Minh City – for a combined US$106.1 million.
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