Apr.28.2022, Shanghai ------ More than two years since the onset of the COVID-19 pandemic, there is light at the end of the tunnel for the Asia Pacific hotel sector, according to CBRE Asia Pacific Hotel Market Outlook - Trends to Watch in 2022, as more markets across the region ease border restrictions in an attempt to reboot business and leisure travel. In 2022, a further improvement in hotel investment volume will be seen as newcomers and experienced investors seek greater exposure, with the weight of capital chasing Asia Pacific hotels now at an all-time high.
Asia Pacific hotel investment staged a recovery in 2021, growing 46% to reach US$12.1 billion compared with 2020. The steady rebound was underpinned by a growing volume of capital seeking to increase in this sector.
In the past six months, foreign funds have acquired Butterfly on Prat, Hotel sáv Hong Kong and Travelodge Central Hollywood Road, with plans to incorporate co-living or student accommodation elements in the redevelopment. In mid-February, the Town Planning Board received the application to convert the ibis Central and Sheung Wan into a residential building. In early April of 2022, CBRE has successfully advised on the transaction of the Rosedale Hotel in Kowloon, which will be renovated into a co-living space according to the investor’s plan, and ready to open in mid-2023.
Despite the ongoing pandemic in Hong Kong, the hotel industry has not seen any significant distressed assets. CBRE found in its 2022 Asia Pacific Investor Intentions Survey that the number of investors expecting a discount on hotel assets dropped from 99% in 2021 to 78% this year, suggesting an improvement in asset price.
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