After hospitality trading volumes reached a five year peak in 2013, the momentum has carried forward through the first half of this year.
Akshay Kulkarni, Regional Director of Cushman & Wakefield’s Hospitality Services for South Asia and Southeast Asia said: “Hospitality investment volume in 2013 more than doubled since 2008 and can be attributed to the excess liquidity, the low borrowing costs and the region’s favourable tourism growth and outlook.”
Cushman & Wakefield, Global Real Estate Consultancy, in their latest report on the hotel markets across 17 gateway cities and prime destinations in Asia and Australia. The cities included in the report are Singapore, Hong Kong, Tokyo, Bali, Seoul, Mumbai, National Capital Region (India), Bangkok, Shanghai, Jakarta, Kuala Lumpur, Beijing, Ho Chi Minh City, Sydney, Melbourne, Perth and Brisbane.
According to Cushman & Wakefield data, the hospitality investment market in the Asia Pacific reached a record high transaction volume of US$12.83 billion in 2013, the highest in the last five years and over 30% higher than 2012.
Growth was led by China, which accounted for US$2.636 billion or 20.5% of the total investment volume. Singapore was the second largest market at US$2.634 billion, followed by Japan at US$2.610 billion, and Australia at US$2.271 billion. Meanwhile, emerging and non-core markets like Cambodia, Macau, Maldives saw some assets changing hands.
Growth momentum form 2013 has carried through to early 2014, as total investment volume of hospitality assets reached US$5.203 billion in H1, which is 9.5% higher compared to the same period last year.
The core markets of Japan, Singapore, China and Australia are still the most traded ones and constitute about 68.8% of the investment volume. Meanwhile, other emerging markets such as Philippines, Malaysia, Sri Lanka and Indonesia are driving growth, and have experienced higher investment quantum compared to the same period last year.
Despite the strong results, Cushman & Wakefield expects the hospitality investment market to moderate through the remainder of the year, and likely to close at US$9.0 to US$10.5 billion for 2014.
Asia Pacific Hospitality Investment Volume in US$ (million)
Countries | 2013 | 2012 | 2013 H1 | 2014 H1 |
Australia | 2,271.06 | 2,699.10 | 592.42 | 654.27 |
Cambodia | 6.40 | – | – | 8.71 |
China | 2,636.26 | 1,558.60 | 787.56 | 1,678.62 |
Hong Kong | 1,155.03 | 1,022.10 | 400.53 | 246.77 |
India | 141.28 | 89.70 | 89.37 | 84.31 |
Indonesia | 14.00 | 31.61 | – | 55.91 |
Japan | 2,609.65 | 2,337.51 | 1,234.71 | 881.74 |
Korea | 40.12 | 241.39 | 31.47 | 91.53 |
Macau | 419.05 | – | – | 115.97 |
Malaysia | 137.29 | 123.15 | 57.41 | 309.18 |
Philippines | 35.85 | 96.34 | 35.85 | 204.16 |
Singapore | 2,634.34 | 742.80 | 974.08 | 364.65 |
Sri Lanka | 42.33 | 8.67 | 7.73 | 30.24 |
Taiwan | 55.80 | 288.38 | 40.03 | 6.82 |
Thailand | 205.11 | 350.67 | 176.22 | 166.76 |
Vietnam | 246,04 | 184.28 | 246.04 | 44.66 |
Others | 181.94 | – | 77.34 | 249.57 |
Total | 12,831.55 | 9,774.29 | 4,750.76 | 5,202.58 |
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