Asia-Pacific hotels a ‘most compelling’ investment amid travel growth, flat supply: CBRE

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.