Asia’s hotel investments are expected to exceed $7 billion (Rs30,800 crore) in 2007, setting a record, as investors expand into emerging markets, including China and India,Jones Lang LaSalle Hotels said.
Hotel property transactions are expected to increase from $5.3 billion (Rs24,380 crore then) in 2006, the hospitality research and brokerage said in a statement. Hotel transactions last year gained 73% from 2004, the group said.
“The markets in the region still present good value with opportunity for capital growth,” Scott Hetherington, managing director of Asia for Jones Lang LaSalle Hotels, said in the statement. “We expect to see more transactions in more markets throughout 2007 as investor interest spreads into new markets especially China, India, Vietnam.”
The increasing transactions reflect investor interest in the hotel industry, which is recovering from a slump after the 11 September attacks in the United States in 2001, the Iraq war and the severe acute respiratory syndrome outbreak that put travel plans on hold in the past five years.
Investors are also expanding into emerging economies for growth opportunities after buying assets in developed markets. In 2006, Singapore, Hong Kong and Japan were the preferred investment destinations, Jones Lang LaSalle Hotels said.
Asia’s biggest hotel companies include Shangri-La Asia Ltd and Hongkong and Shanghai Hotels Ltd.