,APAC

Blue skies ahead: APAC hotel investment volume hits US$4.7b in H1 2021

Hotel investment demand is expected to grow further in the coming months.

According to CBRE, hotel investment transactions hit US$2.3 billion in the second quarter of 2021, bringing the total transaction value to US$4.7 billion in the first half of the year. A huge chunk of the sales in Q2 were from Japan, China, Korea, and Australia.

In Japan, one of the major deals was Kintetsu Group’s sale of eight hotels (including Hotel Kintetsu Universal City and Miyako Hotel Kyoto Hachijo) to Blackstone for approximately JPY 60 billion. Another landmark deal was the forward purchase of a super luxury hotel, Toko Torch, by Mitsubishi Estate and Tokyo Century for approximately JPY 56 billion.

Meanwhile, in Australia, CBRE reveals Salter Brothers purchased the Travelodge portfolio for AUD 620 million under a joint venture with Singapore’s GIC and Partners Group. The portfolio consists of 11 hotels across Sydney, Melbourne, Brisbane, Perth, and Newcastle which are all expected to be rebranded soon.

“While the pandemic has seen hotel owners having to underwrite lower future trading incomes and discouraged potential investors from entering the market, the recent spate of transactions reflects the fact that this environment has created new opportunities. Well capitalised and experienced investors who are looking beyond the downturn and adopting a longer-term view towards investment returns have been increasingly active in recent months,” says CBRE.

CBRE expects the hotel investment demand to increase in the coming months as end-user demand improves on the back of rising vaccination rates and expectations of an economic recovery.

Join Realestate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

New home sales dropped 31.4% during the month.
This is due to elevated supply levels and uncertain demand from the Mainland.
The growth will be more prominent in Japan, Australia, and Hong Kong.
There were 17 major deals worth over US$12.8m each.
Private equity investors’ interest in offices will drive investment demand.
Savills expects rents of outlying business parks to bottom out soon.
Data centres accounted for 34% of all investments during the quarter.
Luxury brands are still wary of going to the high streets.
Q3 Grade A office rents increased 0.7% for the first time in five quarters.
Average multifamily asking rents dropped 3.6% over the year. 
Rents declined in all major submarkets while Kowloon rents proved more resilient.
Sales were propelled by the residential sector.
22% of all residential launches in H1 2021 were from the affordable segment.
But Colliers says transactions may pick up in Q4.