Hotel investment in the Asia Pacific region go up 33% in H1 2022

Singapore was one of the quickest to recover, as it was also one of the first to lift most of its border restrictions

While leasing activity was weaker in some segments and markets, investment in the Asia Pacific region remained strong. 

According to BusinessWorld, CBRE has a bright outlook for the region’s property sector in 2022. The region’s commercial real estate investment volume was USD31.2 billion during the first quarter, declining 24 percent QoQ but growing 15 percent YoY. 

Investment activity in the industrial sector increased by only three percent YoY to USD5.4 billion, owing mostly to a decrease in the number of major portfolio deals following a strong 2021.

Retail transactions in the first quarter were USD4 billion, up 46 percent YoY, which can be attributed to border relaxations.

Also, hotel transactions climbed by 47 percent YoY to USD2.5 billion.

More: Investors of hotels in the Asia Pacific region to focus on sustainability, according to research

Meanwhile, during the first half of 2022, hotel investment in the region reached USD6.8 billion.

Hospitality Net reported that Singapore was one of the quickest to recover, as it was also one of the first to lift most of its border restrictions. 

According to JLL, investments in the first half of 2022 represent 33 percent growth YoY and 11.9 percent growth over 2019, which represents a return to pre-pandemic levels of capital deployment.

Transactions fell 20.2 percent YoY with 75 deals during this period. The total number of rooms transacted, however, grew 29.9 percent YoY, reaching 19,822, a 9.4 percent higher than 2019 levels.

“The increase in deal activity was influenced by a spike in portfolio transactions as institutional investors sitting on dry powder seek to deploy their capital more efficiently,” said JLL.

In terms of investment volume, Japan earned the most capital, with USD1.8 billion, followed by South Korea (USD1.7 billion), and Greater China including Hong Kong (USD1.6 billion).

JLL expects Australia and Thailand to recover in the second half of the year.

The Property Report editors wrote this article. For more information, email: [email protected].