Asia Pacific Hotel Investments Bounce Back to Pre-Covid Levels

TTG Weekly are reporting their latest findings regarding hotel investments in the Asia Pacific region and the bottom line is recovery continues to accelerate in 2022, with investment volumes for the first half of the year totalling USD 6.8-billion.

According to JLL Hotels & Hospitality Group’s data and analysis, investments in the first half of 2022 represent 33-percent growth Year-on-Year and an 11.9-percent increase when compared with 2019, demonstrating a return to pre-pandemic levels of capital deployment into the Asia Pacific hotels sector.

In total, there were 75-transactions in the first half of 2022, down 20.2-percent Year-on-Year and 33-percent on the first half of 2019 numbers. However, the total number of rooms transacted during the first six months of 2022 was 19,822, representing an increase of 29.9-percent versus the first half of 2021 and 9.4-percent during the pre-pandemic period in 2019.

The increase in deal activity was influenced by a spike in portfolio transactions as institutional investors sitting on dry powder seek to deploy their capital more efficiently. However, according to JLL, ongoing momentum will likely be challenged by growing macroeconomic and geopolitical headwinds in the second half of 2022.

“The resilience of Asia Pacific’s hospitality sector and reopening of borders have accelerated further in 2022, with pandemic-induced pent-up corporate and leisure demand ensuring that travel demand will soon be on par with pre-Covid levels. As a result, the two-year lull in investment activity has largely subsided, demonstrated by record levels of capital raised for deals across the Asia Pacific gateway markets and resort destinations,” said JLL Hotels & Hospitality Group Senior Managing Director, Head of Investment Sales, Asia Pacific, Nihat Ercan.

Investment activity was spread across various Asia Pacific markets as the opening of borders ensured that many markets transitioned from reliance on domestic demand towards inbound leisure and corporate business. However, the conflux of current favourable travel market conditions and the longer-term economic outlook is creating a disconnect between buyers’ and sellers’ expectations around pricing.

From an investment volume standpoint, Japan (USD 1.8-billion), Korea (USD 1.7-billion), and Greater China, including Hong Kong (USD 1.6-billion), received the most capital in the first half of 2022. Singapore (USD 899.7-million), Maldives (USD205.5-million), and Indonesia (USD 159.6-million) continued to recover strongly. Activity in Australia (USD 145.5-million) and Thailand (USD37.7-million) was more subdued but will likely be bolstered in the second half due to numerous marque deals closing.

“A more sustainable recovery in travel will intensify the largest challenge faced by many investors of successfully deploying capital into investment grade products across the region. We remain steadfast in our conviction that total Asia Pacific hotel investment volume will cross the USD 10-billion mark despite the scarcity of assets coupled with macro and geopolitical headwinds that will continue to influence capital activity,” commented JLL’s CEO, Asia Pacific, Mike Batchelor.

 

Source: TTR Weekly

Latest Post

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.