Hong Kong leads Asia Pacific for hotel deals in first nine months of 2017 and Thailand ranks third after Japan
Hong Kong led Asia Pacific by volume of hotel investment transactions, with 11 deals worth a total of nearly US$1.5 billion in the year to September, according to the latest figures released by JLL. Japan and Thailand saw the second and third highest levels of activity across the region at US$1.2 billion and US$335 million in transaction volumes respectively.
Of the Hong Kong deals, several transactions have potential for conversion into residential or office space. Recently, hotel owners have been considering converting their assets given the strong demand for office space.
“For investors, Hong Kong hotels are appealing because of the discounted rate per square foot when compared to other asset classes, something that has been a factor in some recent transactions. Hotels such as J Plus Hotel has already been purchased for conversation, likely into an office,” says Mike Batchelor, Head of Investment Sales Asia, JLL Hotels & Hospitality Group.
Thailand has experienced another active year recording US$335 million in hotel transactions, led by the capital, Bangkok.
This is the highest total volume recorded since 2014. JLL acted as sole advisor on several hotel deals this year including the Premier Inn portfolio and Sukhumvit S27, selling for a combined US$111.5 million. Interest in Thailand is being buoyed along by the continuing stable political environment and relative affordability of hotels compared to a number of other Asian countries.
Domestic investors most active in Japan
Japan has remained a stellar performer in terms of hotel investment since 2013, with transaction volumes reaching more than US$1.2 billion as of September 2017….