Jones Lang LaSalle Hotels (JLL) is tipping Thailand and Indonesia to be the next hot hotel investment markets in the Asia Pacific region.
The company, which specialises in hospitality real estate investment services, said the two Southeast Asian countries, along with the Maldives, offered the most potential to international hotel property investors.
“We are seeing fantastic potential coming out of Thailand, Indonesia and the Maldives, backed by rising revPAR (revenue per available room), healthy investor interest and solid travel demand,” said Tom Oakden, the company’s Executive Vice President of Investment Sales. “While hotel transactions in Asia and globally have slowed in the last year, investor sentiment remains strong for the right prospects, and these are markets are showing the greatest opportunity for capital value growth.”
For Thailand, JLL noted that revPAR is climbing in Bangkok despite new hotel supply, while resort markets like Phuket are exhibiting stronger income growth potential. It also noted that Thailand is becoming increasingly attractive to overseas investors, having once been dominated by domestic players.
“Thailand has seen five major hotel deals in the last 18 months – including the Mövenpick Phuket, which was the country’s largest open market hotel transaction to date,” the JLL report said.
In terms of Indonesia, JLL said the focus of overseas investment is now spreading from Bali and Jakarta into other regions.
“Lack of new stock is a challenge, although… research indicates that investors are preparing to sharpen yield expectations. This, coupled with exceptional year-to-date revPAR growth, may well close the gap between the pricing expectations of buyers,” the report said.
The “healthy influx” of Chinese visitors to the Maldives was cited as one of the main factors influencing the Indian Ocean island nation’s attractiveness, along with relaxed government policies on overseas investment.