According to the IMF, despite global economic uncertainties (who is going to call the timing for the impending recession, certainly not me) and slowing regional growth (for example, China recorded GDP growth of 6% in Q3 2019, the slowest rate of growth in 30 years), Asia remains the fastest growing region in the world and in 2019 could account for more than two-thirds of global GDP growth.

Perhaps the economic uncertainties of the region are beginning to influence local hotel markets. Certainly there are more cities in negative RevPAR territory than in recent years. Notable fallers include: Hong Kong SAR (most likely due to the umbrella-filled streets deterring visitors) and the island paradise of Phuket (-10.8%, reportedly due to a sluggish world economy and political uncertainty in Thailand).

In what is still a relatively buoyant region in terms of construction activity, construction cost inflation is expected to continue to grow in most markets (aside from Hong Kong, where tender prices are in decline). A rich variety of transactions were concluded in the last 12 months, including some big corporate deals, mixed use schemes, portfolios, resorts and deals out of administration.

Australia was the most dynamic country, with Singapore shown to be singing from a similar hymn sheet.

Asia remains the fastest growing region in the world and in 2019 could account for more than two-thirds of global GDP growth. For the final page feature, STR is sharing some valuable opinions on future trends within the key cities in China, thereby highlighting growing regional differences, and varying future supply and demand trends.

About WhiteBridge Hospitality

Whitebridge Hospitality is a specialist advisor to investors, developers and operators in the hospitality industry around the globe. We provide investment, operational and planning advice, and guidance in respect of the entire hospitality spectrum, including: hotels, mixed-use developments, conference and exhibition centres, spas, leisure facilities, casinos, visitor attractions and sporting venues. Our uniquely qualified team can provide services throughout an asset's life cycle, from site selection and acquisition, through master planning and feasibility studies, to operator selection, operational and asset strategy advice, to sale and agency services.