APAC hotel investments to hit US$9b in 2022

Hotel sales grew 39% to US$8.5b in 2021.

Investor appetite in the Asia Pacific hotel sector remained robust in 2021 with hotel sales recording a healthy 39% y-o-y growth to USD 8.5bn, which is equivalent to 60% of 2019 totals.

According to JLL, some notable transactions in 4Q21 include: 

• Kohlberg Kravis Roberts formed a joint venture with Futuro Capital and MarpropReal Estate Investors to acquire the Sofitel Sydney Wentworth for USD235 million
• XYM Hotel in Seoul was purchased by Chokwang Leather Co 
• Ascott Raffles City Hangzhou was sold by CapitaLand China Holdings Group to Hangzhou Chengtou Assets Management (Group) Corporation 
• Italian investor Emerald Collection acquired Faarufushi Maldives RaaAtoll, underscoring strong interest in resort destinations from foreign buyers – a JLL deal

Here’s more from JLL:

China, Japan, South Korea and Australia represented 82% of total APAC transaction volume and are likely to remain the most active markets. 

The activity in 2021 was significantly driven by alternative use conversions to residential, multifamily and co-living in key cities in Greater China, South Korea and Australia. 

Sizeable bid-ask spreads remain across the region. Owners are bolstered by low gearing and strong lender support and thus holding for higher pricing while they wait for market conditions to improve. 

Hotel investments are expected to reach USD 9.0bn in 2022, with Japan to top the podium.