Hotel investment volumes in Asia reached $3.9 billion at the end of the third quarter, a 145 percent jump from the same period last year, according to the latest data from Jones Lang LaSalle's Hotels & Hospitality Group.
The region recorded a $1.2 billion in hotel transactions during the third quarter, an increase of 41 percent from last year, as the strong market records its best year since the financial crisis.
"Hotel trading performance in Asia has experienced a significant turnaround over the past two years and nowhere more so than in Singapore," Mike Batchelor, managing director investment sales, hotels & hospitality, JLL said in the release. "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."
An overall sense of optimism in Asia is pushing prices past their 2007 peak, with strong sales driven by Japan, as well as Singapore, the firm said. However, as the availability of investment grade hotels becomes scarce, investors are turning to markets such as Thailand, Seychelles and the Maldives.
Looking ahead, the firm expects $1.3 billion worth of exchanged contracts will contribute to a strong pipeline for the rest of the year.
"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 $3.5 billion to $5.5 billion, confirming 2013 as the strongest year since 2008," Mr. Batchelor said.