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Singapore

Hotel transaction volumes in Asia up 145 percent y-o-y as 2013 forecasts continue to surge

Latest Q3 figures from Jones Lang LaSalle show investment in region’s hotel market remains strong, driving benchmark prices


SINGAPORE, 1 October 2013 – Hotel investment volumes in Asia this year reached USD3.9 billion at the end of Q3 2013, up 145 percent on the same period in 2012, according to the latest research from Jones Lang LaSalle’s Hotels & Hospitality Group (H&H). The quarter itself recorded a robust USD1.2 billion of transactions, up 41 percent on Q3 2012, as the market continues to experience its strongest year since the Global Financial Crisis.

The strength of the region’s tourism markets is contributing to an overall sense of optimism in hotel investment across Asia, pushing price benchmarks past their 2007 peak with Japan (33 percent) and Singapore driving the solid sales activity. Accounting for 16 percent of the year’s transactions to date, the Singapore investment market continues to experience strong demand from overseas investors given its consistently high occupancy rate and tourist arrivals.

Of total hotel investment volume recorded this year, Jones Lang LaSalle has acted as advisor for USD1.9 billion in deals throughout Asia.

Mike Batchelor, Managing Director Investment Sales, Hotels & Hospitality, Jones Lang LaSalle said, “Hotel trading performance in Asia has experienced a significant turnaround over the past two years and nowhere more so than in Singapore. 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 USD1.3 billion in exchanged contracts that will contribute to a very strong pipeline over the remainder of the year.”

“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 hotspot where contracts have just been exchanged on what will be our fourth transaction in the country in as little as two years.”

“While the market is beginning to feel some restriction from a limited pipeline of hotel listings, the unrelenting strength of demand across both private and institutional investors will ensure that transaction volumes remain healthy. Given the volume of hotel deals that are due to settle before year-end, we are increasing our regional full year total sales projection from USD3.5 billion to USD5.5 billion, confirming 2013 as the strongest year since 2008.”

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About Jones Lang LaSalle’s Hotels & Hospitality Group
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totalling nearly US$25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
 
For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store.
 
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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26, 100 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.ap.joneslanglasalle.com 

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