Investors demand hotel asset
Strong indicators in the survey are said to point to an increasing level of investor confidence in the hotel industry.
“Buy sentiment has increased to its highest level since we started the survey seven years ago, with the greatest proportion of investors looking to acquire assets in 24 of the 29 surveyed markets,” said David Gibson, CEO Asia Pacific, Jones Lang LaSalle Hotels. He added, “With only 8% of investors favouring selling, this indicates that competition for assets will remain intense with at least four buyers for every hotel that comes to market.”
The positive results are also said to represent a shift from recent reports where beliefs showed signs of waning as markets advanced further up the hotel trading cycle.
The two key markets where investors are most enthusiastic are on two of the region’s consistent investment hot spots – Tokyo and Sydney.
“Survey results show that investors in Australasia look set to continue their love affair with serviced apartments, a segment which has grown to over a third of the size of the Australian hotel market over the last ten years,” added Mr Gibson in a statement given.
However, investors remain more cautious about the long-term proposition of luxury hotels with Australian markets scoring as some of the lowest across the Asia Pacific region.
Comments are closed.