Growing Hotel Investments in the Asia Pacific in 2021 Reflect Increasing Optimism

New research from CBRE indicates that hotel investment in APAC is picking up steam and will reach $4.7 billion in the first half of 2021.

Hotel transaction volume in the region totaled $2.3 billion in Q2 2021, a 5.1% decline from Q1 2021 on a quarterly basis. According to CBRE, the majority of sales volume during the second quarter came from Japan, Mainland China, Korea, and Australia.

As a significant amount of capital continues to seek returns in the hotel industry, particularly from well-capitalized and seasoned investors looking beyond the downturn and adopting a longer-term view toward investment returns, more investment opportunities are expected to emerge.

Resort destinations like Sanya and the Maldives benefited the most from pent-up demand for leisure travel, recording increases in average daily revenue (ADR), in stark contrast to other important markets that experienced a y-o-y decline in ADR. According to CBRE, regional ADR is down 22.2% year over year at $77.78 on a 12-month rolling basis for the year ending July 2021.