Hong Kong and Asia-Pacific Hotel Investments Rise 21pc in First Half
Investor appetite grows as strong travel demand and limited new supply support property values across the region.
Quick Look
Investor appetite for hotel assets in Hong Kong and the wider Asia-Pacific region rose 21 per cent in the first half of the year to US$8 billion, driven by travel demand and constrained supply, according to CBRE.
AI-generated summary
Why It Matters
Investor appetite for hotel assets increased in Hong Kong and the wider Asia-Pacific region in the first half of the year.
Investor appetite for hotel assets increased in Hong Kong and the wider Asia-Pacific region in the first half of the year as consumers showed growing eagerness to travel and constrained supply supported property values, according to CBRE.
The region netted US$8 billion of investment in the period, up 21 per cent from a year earlier, with Japan, mainland China and South Korea attracting the most activity, the property consultancy said in a report on Thursday.
“Hotels have become one of the most compelling real estate investment sectors in Asia-Pacific,” said Steve Carroll, head of hotels and hospitality for Asia-Pacific at CBRE. “Strong travel demand and limited new supply are supporting both operating performance and asset values.”
Higher borrowing costs could moderate investment activity in some markets during the second half of the year, Carroll said, adding that investor interest remained concentrated in markets with strong growth and positive supply-demand fundamentals.
What to Watch
AI outlook — possibilities, not facts
Higher borrowing costs could moderate investment activity in some markets during the second half of the year.
Possible · Within months
Open Questions
- Which specific markets will be most impacted by higher borrowing costs?
- How will the second half of the year compare to initial projections?
