'Why C-REITs are all the Rage for Hotel Investors in China' provides an overview of the pressure in China's hotel investment market where heavily indebted owners are struggling in the face of oversupply.
While trophy hotels continue to attract wealthy individual buyers, many hotel assets in the market are selling at steep discounts to their valuations at auction - raising serious concerns for appraisal standards.
Recently, China's regulators have permitted hotel assets to be included in local Real Estate Investment Trusts (C-REITs) portfolios.
This move could provide a much-needed exit channel for hotel owners, although regulatory approval, pricing, and yield expectations will need to be established before the market can scale.
A deep dive into the opportunities and challenges around C-REITs and hotels is presented in the full article, which is available for download below!
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An advisory firm founded by Dan Voellm, MRICS in 2011 in Hong Kong has seen the opening of additional offices in Bangkok and Shenzhen. AP Hospitality Advisors serves owners, investors, developers, operators and lenders of hospitality assets across Asia-Pacific. The team blends expertise in operations, real estate and finance to support any critical step in the asset life-cycle.
www.ap-ha.com