Asian investors have returned to the Australian hotel market in unprecedented levels.

Over the six months to June 2002, Asian investors have snapped up over three quarters (79.0%) of the total value of hotels sold. \"This dominance surpasses the investment of the 1993-1994 era, which was the heyday of the Asian hotel investors, \" said Mr Mike Batchelor, Executive Vice President, Jones Lang LaSalle Hotels.

During the six months to June 2001, the only Asian investors active in the Australian hotel market were Singapore based Cockpit Hotels who purchased the Terrace Hotel in Perth for A$13.5 million. In contrast, 2002 has seen investors from diverse markets such as Hong Kong, Macau, Indonesia and Malaysia vying for a piece of the action.

In total, Asian investors have spent A$258.2 million to secure six hotels comprising 1,057 rooms. Interestingly, Australian sellers represented 73.5% of the transaction value.Mr Batchelor, who recently returned from Asia said \"The numbers released by Jones Lang LaSalle Hotels are not surprising given the current level of interest being shown in Australian hotel and resort property.\"

\"The perception is that our economy has survived against all odds, posting strong growth despite the Asian economic crisis, a slowing US economy and the events of September 11. Astute Asian investors see the Australian property market booming across all sectors, and are seizing opportunities presented within the tourism sector which are largely ignored by the domestic investors and institutions,\" said Mr Batchelor.

\"Asian investors recognise the opportunity to buy into these hotel markets at the bottom of the cycle and are positioning themselves to benefit as these cities enter their recovery phases. This is reminiscent of the counter cyclical buying undertaken by Asian investors in the early to mid 1990s where substantial capital gains were made,\" said Mr Batchelor.

Mr Batchelor expects this trend to continue given the number of major hotel offerings currently for sale or entering the market in the next quarter which are being investigated by our close neighbours.

Hotels sold to Asian investors so far in 2002:
Westin Hotel, Sydney, NSW
Parkroyal on St Kilda Road, Melbourne, VIC
Cambridge Park Inn, Sydney, NSW
Westend, Sydney, NSW
Capitol Square Hotel, Sydney, NSW
Kirketon Park Country House Hotel, Pokolbin, NSW