According to new research by CBRE, hotel investment in APAC is gaining momentum, reaching $4.7 billion in H1 2021.
On a quarter-over-quarter basis, Q2 2021 saw $2.3 billion in hotel transaction volume across the region, a 5.1% slide from Q1 2021. Japan, Mainland China, Korea and Australia made up the bulk of sales volume during the second quarter, says CBRE.
More investment opportunities are set to emerge as a large quantum of capital continues to seek returns in the hotel sector, particularly from well-capitalized and experienced investors looking beyond the downturn and adopting a longer-term view towards investment returns.
Resort markets like Sanya and the Maldives were the biggest beneficiaries of pent up leisure travel demand, recording increases in average daily revenue (ADR), marking a stark contrast against other key markets which saw a y-o-y drop in ADR. Regional ADR stands at $77.78 on a 12-month rolling basis for the year ending July 2021, a 22.2% y-o-y decline, concludes CBRE.