Hotel investments in the Asia Pacific region, to reach more than USD10.7 billion this year

Hotel transactions reached USD8.4 billion in the first three quarters of the year, up 16 percent YoY

According to JLL’s Asia Pacific Capital Tracker 3Q22, real estate investment in the region slowed down in the third quarter due to fewer trades in key markets, rapid currency depreciation against the US dollar, and the rising debt, as a result of the aggressive tightening of interest rates in the US.

Stuart Crow, CEO of Capital Markets, Asia Pacific at JLL, mentioned that, despite this, the firm’s investors are still optimistic about the region’s property sector. Their medium- to long-term plans to expand are also still in place.

Sector-wise, office transactions saw a 33 percent YoY contraction to USD14.4 billion while logistics and industrial transactions decreased by 52 percent to USD4.6 billion. 

More: The slow and steady recovery of the Asia Pacific region’s hotel sector

Activity in Australia was strong during the third quarter, reaching USD7.3 billion, up 15 percent YoY on the back of numerous high-profile office sales in Sydney and Melbourne. 

Moreover, South Korean transactions earned USD6.4 billion by the end of Q3 despite a slight eight percent decline YoY. Also, Singapore’s USD2.3 billion in sales for the quarter was up 116 percent YoY, as large office deals were recorded.

Meanwhile, Hospitality Net reports that hotel investments in the Asia Pacific region will be valued at more than USD10.7 billion this year due to pent-up demand, a resurgence of cross-border transactions, and a resilient travel industry.

Investment volumes are estimated to go up by 14 percent YoY due to a rebound in leisure and business travel in the region.

Hotel transactions reached USD8.4 billion in the first three quarters of the year, up 16 percent YoY.

“The outlook for the region’s hospitality is robust yet realistic, a fact that will be reinforced by more measured transactional growth in 2023. The hotel industry should be better positioned to adapt to inflationary pressures and while the sector will remain a sound investment, we do expect activity to grow at a slower pace,” says Mike Batchelor, CEO of JLL Hotels & Hospitality Group, Asia Pacific.

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