APAC hotel investments up 14.3% to US$1.6b in Q1

Hotel investment transactions fell 55% to US$7.5b over the last 12 months.

Compared to other commercial real estate classes in Asia Pacific, deals in the hospitality industry remain few and far between, as the hotel sector, unsurprisingly, continues to be the weakest asset class for deal activity. According to Colliers, volume of transactions over the last 12 months was registered at US$7.5 billion, which was a 55% decrease year-on-year. 

Here’s more from Colliers:

Since the start of 2020, we note that circa US$1.5 billion of hotel deals have fallen through. Nevertheless, hotel deals have picked up slightly in Q1 2021 by 14.3% to US$1.6 billion as compared to the last quarter. The most liquid markets were China, Japan and South Korea, while markets such as Malaysia and Thailand saw little investment sales during the quarter. 

While COVID-19 has forced companies to reassess the necessity of business travel, it still appears to be the biggest lifeline for hotel owners in the region. Investors have placed more faith in hotels in urban areas, with transactions of limited-service hotels still higher than 2017 levels. In addition, we note that some hotels have managed to break even with the trickle of business arrivals, while others have signed up as quarantine facilities. 

Although green lanes for business travel have emerged, the development of travel bubbles has been slow. And with government aid drying up, deals in areas such as South Pacific and Southeast Asia have been limited, with owners adopting a wait-and-see approach given the evolving COVID-19 situation.


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!

Get Realestate Asia in your inbox
Analysts revised up pricing outlook as the probability of cooling measures wanes.
JLL believes the market’[s rebound is gaining momentum after several false alarms.
These two projects will bring a total of 542 new rooms to the market.
The average market capital values are now below THB 127,000 per sqm.
Industrial stock is expected to reach a total of 571,100 sqm this year.
New launches increased 18.1% to 3,716 units, driving healthy sales figures.
Blame it on burgeoning vacancy rates and a heavy supply schedule.
Secondary vacancy from last year’s supply is likely to materialise later this year as office demand weakens.
The midscale segment will account for 42% of the new supply.
Blame it on weak expat demand and their shrinking housing budgets.
Vacancy rate reached 9.8% in Q1, the highest since 2009.
Rents and capital values are still under pressure as landlords drop asking rents.
New private home launches fell from 1,038 units in April to just 514 units in May. 
There were no new projects launched in Q1 as developers focus more on selling existing ones.