Asia Pacific Hotel Trends - Q3 2015

●  Investor demand for hotels in Asia Pacific remained firm in Q3 2015 but the period witnessed the completion of just a few major deals as the lack of stock for sale continued to frustrate investors. Highlights included InterContinental Hotels Group (IHG) agreeing to sell the InterContinental Hong Kong to the Korea Investment Corporation (KIC) via Gaw Capital Partners for US$938 million.

●  Tourism arrivals continued to post steady growth during the quarter. The latest United Nations World Tourism Organisation (UNWTO) barometer reported that Asia Pacific recorded a 4.0% y-o-y increase in international arrivals in the year to August. Oceania led growth with 7.0% y-o-y followed by Southeast Asia with 6.0% y-o-y.

●  Australia remained very active with noteworthy transactions including Singapore-listed Bonvests Holdings acquiring the Four Points by Sheraton in Perth. Japan was also positive as tourism arrivals continued to scale new heights, although the upbeat market outlook means owners are reluctant to dispose of assets. Investors and developers are therefore focusing on development opportunities.

●  The outlook remains bright and investors will continue to display a healthy appetite for hotels. More investors will broaden their search to regional cities in search of higher yield opportunities.

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Robert McIntosh
Executive Director - CBRE Hotels, Asia Pacific
O: +65 6326 1200
M: +65 8123 0208