Hotel transaction activity in Asia reached US$10.8 billion last year, more than double the previous high of US$5 billion recorded in 2006.
During 2007, the Asian hotel market witnessed 83 major (valued above US$5 million) transactions. Japan recorded the highest transaction activity totalling US$6.8 billion; including four out of the five largest transactions including the IHG / ANA portfolio sold by Jones Lang LaSalle Hotels.
“Asia’s hotel markets continue to perform well, driven by strong local economies and expanding leisure markets,” said Scott Hetherington, Managing Director Asia, Jones Lang LaSalle Hotels.
On average, investors paid approximately US$225,000 per room for hotels across Asia.
“Reflective of a higher level of product being offered for sale throughout the year, this was a 15.3% increase over 2006 and the highest level recorded since 1997,” said Craig Collins, Managing Director Investment Sales Asia, Jones Lang LaSalle Hotels.
While regional players still dominate, cross-border transactions have also increased accounting for 46% of total hotel transaction activity – a significant increase on last year’s 39% (+US$3 billion).
Capital inflows in 2007 were dominated by U.S. private equity groups, as well as Middle Eastern investors.
Most of the deals were concentrated in North Asia – Japan, Hong Kong, China and Macau with Vietnam also attracting “unparalleled levels of interest”.
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