Market Snapshot: Asia Pacific 2017
By Victoria Jia Li Chan, Analyst at HVS Singapore and Kyu Baek Kim, Analyst at HVS Singapore and Jeremy Teo, Analyst at HVS Singapore
Transactions in Asia Pacific
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.
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.
Victoria Jia Li Chan
Victoria Chan is an Analyst with HVS Singapore. She is a recent graduate with a Bachelor of Science Degree in International Hospitality Management from École hôtelière de Lausanne. Previously, she has done an internship with HVS Singapore andhelpedwithmarketresearch and analysis for both publications, valuation and marketing strategy projects.More from Victoria Jia Li Chan
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.More from Kyu Baek Kim
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.More from Jeremy Teo