Jones Lang LaSalle Hotels, who tracks major hotel sales (over US$2.5 million), recorded a total of 21 hotel sales comprising 5,465 rooms for…
Jones Lang LaSalle Hotels, who tracks major hotel sales (over US$2.5 million), recorded a total of 21 hotel sales comprising 5,465 rooms for over US$670 million across Asia in 2002. Japan and Hong Kong were the hotspots for investment activity in terms of sales value. The firm`s newly released Asia Digest, Volume Vl 2003 provides a review of operating performance of hotels in Asia including a summary of hotel sales in 2002 and the future outlook for activity in 2003.
2002 was an encouraging year in terms of hotel transactions and acquisition of debts particularly in Japan. A rising number of bankruptcies and the restructuring of companies under pressure by creditors has spurred activity in this historically illiquid market. We expect this trend to continue into the medium term said Scott Hetherington, Managing Director, Jones Lang LaSalle Hotels Asia.
2002 also saw a flurry of investment activity in India as many hotels were finally sold as part of the Indian government`s privatisation program. The majority of purchasers were domestic owner/operators and hotel investors said Mr Hetherington.
In Singapore, the sale of the Robinson Hotel is notable, being the first Singapore hotel sold as a going concern since 1994. We have also just commenced the marketing of 41 Bencoolen, Singapore, an existing 14-storey building, with approval to convert into a 213-room hotel. The property is currently the only hotel development in Singapore for sale and the first for this year.
Looking forward, the markets of Tokyo, Beijing, Bangkok and Shanghai are current investor favourites according to Jones Lang LaSalle Hotels` latest Hotel Investor Sentiment Survey (HISS, January 2003). These markets are widely recognised as key gateway cities and/or the subject of strong growth within the region.
With the prevailing SARS situation in Asia, general sentiment has been affected, particularly that of investors from Singapore and Hong Kong. That said, we expect to see continuing interest shown by family companies and regional groups out of Hong Kong and Singapore. We are experiencing buying activity by well capitalised Thai groups, as well as funds based in Japan for assets throughout the region said Mr Hetherington.
Asia hotel transactions in perspective – During 2002, Jones Lang LaSalle Hotels` database recognised US$3.6 billion worth of hotel transactions in the United States and a further US$5.3 billion worth of transactions in Europe.
Asia`s total volume of hotel transactions during 2002 corresponds to a 50.4% decrease in the total value of hotels transacted during 2001, a difference attributable to the big-ticket sale of the Regent Hong Kong for US$346.2 million in 2001.
Jones Lang LaSalle Hotels` Asia Digest Vol Vl 2003 Edition provides a comprehensive analysis of 22 major hotel markets spread over 12 countries in Asia. It also features an economic report card, tourism market examination and future supply tables.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
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