Archive for category: Misc

to 3Q2023: JLL
Hotel investment activity in Asia Pacific (APAC) experienced a downturn in the first half of 2023, due largely to macroeconomic issues and increasing costs of debt. According to a research report from JLL, APAC hotel investment volumes dropped by 51 percent year-on-year to reach US$3.13 billion ($4.14 billion). The figures look even worse for Singapore, where transactional volumes reached only US$30 million – a 95 percent decrease from 1H2023.

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China followed the region’s trend with a 76 percent annual decline in hotel investments amounting to US$300 million. Meanwhile, Japan bucked the downward trend, as hotel investments in the country grew 56 percent year-on-year to US$1.54 billion. This trend was also echoed in Australia and New Zealand, which saw hotel investments increase by 189 percent over the period.

These lackluster figures led JLL to revise its full-year 2023 forecast for APAC hotel investments to US$8.7 billion – a decrease of 24 percent from the initial estimate the firm had set. Yet, despite these headwinds, the hotel industry is showing indications of improvement as average daily rates across the region’s hotels have begun to rise.

This improvement was further emphasized by the sale of the Parkroyal hotel on Kitchener Road for US$388 million announced by UOL earlier this month. Midtown Properties, a unit of the Worldwide Hotels Group, purchased the hotel, and JLL served as the advisor for the sale. We have also seen other notable hotel transactions take place over the past couple of months, such as the sale of Amari Havodda Maldives resort to Thai hospitality conglomerate Minor International Public, as well as Southeast Asia’s first portfolio sale of the Pullman Jakarta Central Park, ibis Saigon South, and the Capri by Fraser.

The disconnect between tourism demand and macroeconomic conditions remain a challenge for the APAC hotel industry. With prices having adjusted accordingly, it could create opportunities for interested buyers to reconsider the market in the upcoming year.