Hotel transaction volumes in Asia up 145 percent y-o-y as 2013 forecasts ...

Latest Q3 figures from Jones Lang LaSalle show investment in region’s hotel market remains strong, driving benchmark prices

Hotel investment volumes in Asia this year reached USD3.9 billion at the end of Q3 2013, up 145

percent on the same period in 2012, according to the latest research from Jones Lang LaSalle’s Hotels

Hospitality Group (HH). The quarter itself recorded a robust USD1.2 billion of transactions, up 41

percent on Q3 2012, as the market continues to experience its strongest year since the Global Financial

Crisis.

The strength of the region’s tourism markets is contributing to an overall sense of optimism in hotel

investment across Asia, pushing price benchmarks past their 2007 peak with Japan (33 percent) and

Singapore driving the solid sales activity. Accounting for 16 percent of the year’s transactions to date,

the Singapore investment market continues to experience strong demand from overseas investors

given its consistently high occupancy rate and tourist arrivals.

Of total hotel investment volume recorded this year, Jones Lang LaSalle has acted as advisor for

USD1.9 billion in deals throughout Asia.

Mike Batchelor, Managing Director Investment Sales, Hotels Hospitality, Jones

Lang LaSalle said, “Hotel trading performance in Asia has experienced a significant turnaround over the

past two years and nowhere more so than in Singapore. This quarter’s landmark transaction of the

Grand Park Orchard Hotel and adjoining Knightsbridge retail podium heralded the single largest asset

deal in the City’s history. Going forward, we are aware of approximately USD1.3 billion in exchanged

contracts that will contribute to a very strong pipeline over the remainder of the year.”

“As investor confidence in the region continues to rally, the availability of investment grade hotels is

becoming increasingly scarce and, as a result, we are seeing buyers turn their attention towards

markets such as Thailand, Seychelles and the Maldives. The Maldives is proving a particular hotspot

where contracts have just been exchanged on what will be our fourth transaction in the country in as

little as two years.”

“While the market is beginning to feel some restriction from a limited pipeline of hotel listings, the

unrelenting strength of demand across both private and institutional investors will ensure that

transaction volumes remain healthy. Given the volume of hotel deals that are due to settle before

year-end, we are increasing our regional full year total sales projection from USD3.5 billion to USD5.5

billion, confirming 2013 as the strongest year since 2008.”

Hotel transaction volumes in Asia up 145 percent y-o-y as 2013 forecasts ...