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Hotel sales in Asia Pacific to grow 15% in 2015

Tokyo spring

March 2015

JLL’s hospitality team anticipates hotel transaction volume to increase by 15 percent in Asia Pacific, which would mean around USD 8.5 billion of transactions. There is a growing interest in Japan, in particular for portfolio deals in the country, and a steady confidence in Australia. Indonesia will be a favoured market driven in part by currency plays, and liquidity in China is set to rise as well as policy around outbound capital has been eased and focus increases on cross border investment.

JLL’s forecast is based on the firm’s 2015 Hotel Investment Outlook, a forward-looking, global analysis that tracks key factors affecting the hotel investment market.

The outlook forecasts that the Chinese will lead the pack in terms of year-over-year increases in capital deployed. Chinese outbound capital experienced unprecedented growth in 2014 driven by the strength of China’s growing economy and appreciating currency. Towards the end of last year China’s Ministry of Commerce relaxed policy restrictions on big-ticket foreign investments and simultaneously loosened the approval process for overseas purchases. This adjustment allows Chinese investors to more easily access key global markets such as New York, San Francisco, London, Paris and Sydney.