Hotel transactions increased by 54 percent in the first half from a year earlier, as volumes return to pre-pandemic levels
As the Chinese government rapidly rolls out vaccination and pushes for further reopening of the economy, South China Morning Post reports that investors are grabbing more hotels and service apartments, betting on a rebound in tourism.
According to JLL, hotel transactions added up to USD1.3 billion in the first half of this year, a 54 percent increase from the same time a year ago. It added that China led activity in Asia-Pacific, along with Japan and South Korea.
The World Bank says that China’s economy is anticipated to jump 8.5 percent this year, seeing that the government has vaccinated 40 percent of its population as of June, and it aims to hit 70 percent by the end of 2021.
Lucia Leung, associate director of research and consultancy for Greater China at Knight Frank, said, “We’ve seen huge pent-up travel demand in the post-Covid-19 era. The bustling domestic tourism [industry] has become an important engine of the recovering hotel market.”
Shanghai maintains as the top investment destination, contributing up to one-third of the transaction volume. However, the biggest deal during the period involved a luxury-hotel apartment in Beijing.
“Older hotels with repositioning or conversion angles continue to be sought-after by domestic and foreign investors alike,” JLL said. The firm believes transaction volume for China will exceed USD2 billion this year, “which is back to pre-Covid levels”.
Tan Ling Wei, vice-president of Greater China at JLL Hotels & Hospitality said that Shanghai will continue to be a major focus for investors, owing to its established tourism and financial infrastructure.
The Property Report editors wrote this article. For more information, email: [email protected].
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