There was a large increase in hotel investment volumes in the Asia Pacific region during the first half of this year with yields returning to pre-global financial crisis levels. JLL’s Asia Pacific Hotel Investment Highlights H1 2016 report noted that volumes came in at USD3.8 billion, a 13.2 percent increase y-o-y.
A little more than 14,000 keys were traded across the Asia Pacific region during the first half of 2016. The report noted that this figure is a 3,000 key increase from the first half of 2015. Domestic investors led the way in the region accounting for 80 percent of all deals above USD5 million.
JLL recorded a staggering 59 hotel transactions in 11 Asia Pacific countries during the first half. Japan had the highest volume at USD2.1 billion. Australia was second at USD278 million, followed by Mainland China at USD252.6 million and Vietnam at USD237.6 million. There was USD138.3 million worth of hotel investment in Thailand during the first half.
According to the report, the top ten single-asset transactions in the first six months of this year collectively brought in nearly USD1.7 billion with many of these deals taking place in Japan. Five out of the top ten deals concluded during the first half involved properties in the Land of the Rising Sun.
“Looking forward, there remains a weight of capital chasing quality real estate assets. Whilst the investment environment is expected to be dominated by Japan for the remainder of 2016, deal flow should remain robust supported by stronger buying activity in Thailand, Vietnam, Korea and Myanmar,” Mike Batchelor, managing director for JLL’s Hotels & Hospitality Group Asia Pacific, explained in a press release. “Following Brexit, the weaker British Pound may impact outbound travel from the UK, however, Chinese travelers remain a key contributor to tourism in this part of the world.”
