Jones Lang LaSalle’s Hotels & Hospitality Group (JLL) has revealed that the total value of hotel transactions in Asia has increased 145% in 2013. In fact, JLL claims the industry is having “its strongest year since the global financial crisis.”
Key markets such as Singapore and Japan are responsible for the growth, according to JLL Hotels & Hospitality’s Mike Batchelor.
“Hotel trading performance in Asia has experienced significant turnaround over the past two years and nowhere more so than in Singapore,” he explained. “This quarter’s landmark transaction of the Grand Park Orchard Hotel and adjoining Knightsbridge retail podium heralded the single largest asset deal in the city’s history. Going forward, we are aware of approximately $1.3 billion in exchanged contracts that will contribute to a very strong pipeline over the remainder of the year.”
Batchelor added, “As investor confidence in the region continues to rally, the availability of investment grade hotels is becoming increasingly scarce and, as a result, we are seeing buyers turn their attention towards markets such as Thailand, Seychelles and the Maldives. The Maldives is proving a particular hot spot where contracts have just been exchanged on what will be our fourth transaction in the country in as little as two years.”