In comparison to the same period the previous year, transaction volume in Asia Pacific has increased by almost 12% with China contributing to 40% of the hotel transaction volume in the region.

Over the past twelve months from October 2016 to September 2017, HVS has noted close to 240 transactions across Asia Pacific worth approximately US$12 billion. The largest transaction recorded was the portfolio of over 75 properties under Dalian Wanda China.

Over the period from October 2016 to September 2017, Asia Pacific (excluding China and India) witnessed a total hotel transaction volume of almost US$4.4 billion as compared to approximately US$8.6 billion in the previous year.

Reasons for slower transactional activity in the region include owners holding onto hospitality assets due to future growth potential, lack of capital strength from buyers, desire to hold onto ownership of marquee hospitality assets, amongst others.

Regional Share of Hotel Transaction Volume

We note that the majority of hotel transaction volume is still directed towards Australia, Japan and South Korea, similar to the previous period of October 2016 to September 2017.

As compared to the previous period, hotel transaction volumes in  Indonesia, Malaysia and Thailand have seen strong positive growths while Australia, Cambodia, Maldives, South Korea and Singapore have remained fairly stable. Markets  such as Japan, Myanmar, New Zealand, Philippines and Vietnam were found to be less active.

Investor Profile

With a share of approximately 24%, the “developer/owner” dominates the hotel transactions in Asia Pacific and the “real estate operating companies” follows closely after at 23.5%.

The majority of the investors who invest heavily within the Asia Pacific region are located in more developed countries such as Australia, Japan and Singapore.

Read the full report here.

About Jeremy Teo
Jeremy Teo is an Analyst with HVS Singapore. He has recently graduated with a Bachelor of Science degree in Real Estate from National University of Singapore.

Since joining, he has assisted in numerous valuation and feasibility assignments across regional markets that include Malaysia, Indonesia, Vietnam, Papua New Guinea, Japan and Singapore.

For further information, please contact: jteo@hvs.com 

About Kyu Baek Kim
Kyu Baek Kim is an Analyst with HVS Singapore. He has recently graduated with a Master of Science degree in Global Hospitality Business from École hôtelière de Lausanne.

Since joining, he has assisted in numerous valuation and feasibility assignments across regional markets that include Malaysia, Indonesia, and Singapore.

For further information, please contact: kbkim@hvs.com 

About Victoria Jia Li Chan
Victoria Chan is a Senior Analyst with HVS Singapore. She graduated with a Bachelor of Science degree in International Hospitality Management from École hôtelière de Lausanne. S

he has covered a wide variety of assignments across regional markets that include Australia, Cambodia, Indonesia, Malaysia, Maldives, New Zealand, Papua New Guinea, Thailand, South Korea and Singapore.

For further information, please contact: vchan@hvs.com

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