SAVILLS HOTEL ASIA – PACIFIC: “WHILE KEY MARKETS REMAINED HOT, INVESTORS ADOPTED A CAUTIOUS ATTITUDE TO DEVELOPING MARKETS”
The second quarter of 2017 registered US$1.58 billion worth of investment transactions and a total of 29 hotel transactions across eight countries were tracked in Asia-Pacific. Collectively the transaction amount in the first half of 2017 recorded a YoY decrease of 5.5% compared to 1H/2016.
Raymond Clement, Managing Director of Hotels, Savills Asia Pacific said, “After an encouraging start in 2017, the market slowed in the second quarter as investors focused more on home-ground investment opportunities. Nonetheless, given the performance of the regional markets, it may serve investors well to consider secondary markets for assets with high value-add potential.”
One of the largest transactions this quarter was the sale of Four Seasons Bora Bora, acquired by a consortium led by Gaw Capital, from French developer Thierry Barbion and Lancaster Group. The sale was publicised in February this year and was finalised in the second quarter. Another noteworthy transaction was the InterContinental Sydney Double Bay, which was sold for approximately AU$140 million or US$105.3 million. Chinese company Shanghai United RE purchased the property from Singapore-based Royal Group. It is noted that despite the major offshore purchase of the French Polynesia asset, a majority of the transacted hotels were still located in the mature markets of Australia, Hong Kong and Japan, wooing domestic buyers with stable performing assets.
OTHER NEWS ON THE AUSCHAM WEBSITE
In the toolbar of this website, click on “NEWS” for the drop down menu which includes: