Error validating access token: The session has been invalidated because the user changed their password or Facebook has changed the session for security reasons.
Asia Pacific hotels attract 8.5 billion USD19/04/2022
In 2021, total hotel property transactions in the Asia-Pacific region reached $8.5 billion, an increase of 39% compared to 2020.
JLL Hotels & Hospitality Group’s hotel investment outlook report says that, despite being affected by the pandemic (border control) and the large difference in asset purchase and sale prices, in 2021, the flow of real estate investment in accommodation increased sharply.
In the past year, the total volume of hotel property transactions in Asia Pacific reached $8.5 billion, accounting for 13% of the total global hotel transactions. The number of transactions in this segment increased 39% compared to 2020, but sales were still 40% lower than the levels before the Covid-19 outbreak (2019).
According to the survey of this unit, investors who participate in the market of accommodation and resort properties tend to hunt for high-end hotels with entertainment services, with a transaction value of more than USD 1 million, exploiting stable operation. The demand for investment in this segment of hotels accounts for 85% of the total volume of transactions in the region.
Nihat Ercan, Senior Managing Director Asia Pacific JLL Hotels & Hospitality Group, commented that hotel trading in 2021 was strong. Buyers are taking longer investment into account when considering hotel properties in this market. As international travel becomes more accessible, investors will be able to tap into large resources and deploy strategies in the hospitality sector in a variety of markets.
The Maldives saw a revival in visitor numbers in 2021, an increase of 152% compared to 2020, says Nihat Ercan. Specifically, revenue on available rooms of luxury and luxury hotels (RevPAR) of Maldives in 2021 is 24% higher than the level of 2019. The Maldives recovery was due to the successful attraction of strong tourism demand from Western Europe, Russia and several Middle Eastern countries, shifting the focus from the formerly leading markets of China.
All three resort deals in the past year were sold to cross-border investors with funding from Italy, Singapore and the Middle East. This development shows the strong interest of foreign investors in the Asia Pacific hotel market.
Total global hotel property transactions reached $66.8 billion in 2021, an increase of 131% compared to 2020. With an uneven recovery in demand for asset classes, investors focus on acquiring resorts or luxury properties. Assets in urban locations remain the most liquid, but the level of activity in 2021 has decreased by 22% compared to 2019. However, sales activities on all properties at resorts have increased 17% compared to 2019.
In the past year, private capital inflows increased investments in the hospitality sector to $25.4 billion compared to 2020, accounting for 50% of total trading activity globally. JLL forecasts the hotel business market is shifting and adapting positively along with the rapid change in consumer behavior and expectations in the post-Covid period.