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News Release

Bangkok

Asia Pacific Hotel Transaction Volume Reaches US$3.8 billion in First Half 2016

13.2 percent increase from the same period last year


Asia Pacific hotel investment volumes in the first half of this year climbed 13.2 percent to US$3.8 billion compared to the same period last year as yields recovered to pre-global financial crisis levels, according to Asia Pacific Hotel Investment Highlights H1 2016, a report by real estate consultancy JLL.

During the first six months of this year, a total of 14,025 keys traded across the Asia Pacific region, higher than the 10,976 keys achieved over the same period a year ago, according to JLL’s Hotel Investment Highlights report. In total, JLL recorded 59 transactions in 11 countries.

Japan led with US$2.1 billion, followed by Australia (US$278 million), Mainland China (US$252.6 million), Vietnam (US$237.6 million), Taiwan (US$217.6 million) and Thailand (US$138.3 million).

The top 10 single-asset transactions in the first six months of this year collectively amounted to almost US$1.7 billion. Japan lent considerable weight to the rankings, representing five out of the top 10 deals transacted during the period.  

Asia Pacific Top 10 Single Asset Transactions in First Half 2016 

Asset​MarketTransaction Value​
​1​Grand Pacific Le Daiba​Japan​US$604.7 million​
​2​Grand Hi Lai Hotel, Koahsiung​Taiwan​US$190.1 million*
​3​Loisir Hotel Spa Tower NahaJapanUS$176 million
​4​Urawa Royal Pines Hotel​Japan​US$159.6 million​
​5​Westin Resort Guam, Tumon​Guam​US$125 million​
​6​Somerset Zhong Guan Cun Beijing​China​US$92.5 million
​7​The Mosaic Collection Grand Pujian Residence, Shanghai​China​US$ 86.4 million
​8​Hotel Route Inn Gotanda​Japan​Confidential​
​9​InterContinental Asiana Saigon​Vietnam​US$74.9 million*
​10​Hotel Sunroute Shinagawa Seaside, Tokyo​Japan​Confidential
*Allocated price for the hotel component (excludes the department store)
Source: JLL

Overall, domestic investors in the region dominated capital flows, accounting for 80 percent of all deals above US$5 million. 

Mike Batchelor, Managing Director for JLL’s Hotels & Hospitality Group Asia Pacific, says “Looking forward, there remains a weight of capital chasing quality real estate assets. Whilst the investment environment is expected to be dominated by Japan for the remainder of 2016, deal flow should remain robust supported by stronger buying activity in Thailand, Vietnam, Korea and Myanmar.” 

“Following Brexit, the weaker British Pound may impact outbound travel from the UK, however, Chinese travelers remain a key contributor to tourism in this part of the world,” continues Mr Batchelor.​