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Hotel investments in Asia Pacific to top $ 7 bn

Hotel investments in Asia Pacific to top $ 7 bn
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First Published: Wed, Feb 07 2007. 04 53 PM IST
Updated: Wed, Feb 07 2007. 04 53 PM IST
By AFP
Singapore: Investment in the Asia Pacific hotel sector including India is expected to exceed USD seven billion this year, up 33 per cent from USD 5.25 billion in 2006, an industry group said.
New markets such as China, India and Vietnam are expected to see increasing investor interest, while Singapore, Hong Kong and Tokyo will remain favoured destinations, hotel investment services firm Jones LangLasalle Hotels said in an industry outlook.
Middle East interest which saw a resurgence in 2006, is expected to continue in the regional market this year, according to the report released late Tuesday.
“We expect to see more transactions in more markets throughout 2007 as investor interest spreads into new markets, especially China, India and Vietnam,” said Scott Hetherington, Jones LangLasalle Hotels managing director for Asia.
While domestic players accounted for about half of total transactions in the industry in 2006, outsiders are expected to figure more largely.
“US opportunity funds, over the last few years, have become owners of a significant stock of Asian hotel assets and we are beginning to see some churn from these players,” Hetherington said, adding this should continue in 2007.
“There is resurgence of interest from the Middle East ... and we expect to see more investments by Middle Eastern investors, and to a smaller extent, European investors during 2007 as the trend of offshore investment and global diversification gains pace.”
In 2006, Singapore, Hong Kong and Japan were the most favoured investment destinations, although high transaction volumes were also recorded in China, Thailand, Taiwan, Australia and New Zealand.
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First Published: Wed, Feb 07 2007. 04 53 PM IST
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