Excerpt from HVS

In 2018, transaction activity in Asia Pacific continued its strong momentum from 2017 and achieved transaction volume of approximately USD12.8 billion worth of hospitality assets, indicating a 26.6% increase year-on-year. From 4Q2018 to 3Q2019, transaction activity in Asia Pacific has slowed down. Despite the reduced transaction activity, growing interest in hospitality assets continue to be observed in regions such as Australia & New Zealand, India & Sri Lanka and specific markets in the North Asia and South-East Asia regions.

For some markets, the slowdown can be attributed to various factors including political instability, weakening market performance and a cautious macro economical outlook with uncertainties brought about by the China-United States trade war. However, for other markets, interest remains strong and is curbed by limited investment opportunities and the mismatch in pricing expectations between investors and sellers.

Strong investors appetite for hospitality assets is observed over the last four quarters (4Q 2018 – 3Q 2019) in Australia, Singapore and South Korea. Transaction volume for the three identified markets has seen an increase over the previous four quarters,  alongside an increase in the number of transaction in all markets except Australia. In particular, South Korea has seen transaction volume soared from USD 1.3 billion to USD2.3 billion with 94 hospitality assets having traded hands.

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