The first quarter of 2017 registered US$2.17 billion worth of investment transactions, representing a 12.5% increase from Q1/2016 (US$1.93 billion). Approximately 33 hotels across ten countries were sold in Asia Pacific.

The biggest transaction this quarter was the sale of the Newton Place Hotel in Hong Kong, acquired by Tang Shing-bor from Henderson Land for approximately HK$2.3 billion (US$296.5 million).

There were two noteworthy transactions in Melbourne, namely W Hotel Melbourne and Hilton Melbourne South Wharf. The former was sold for approximately AU$233.0 million (US$178.6 million) to the Daisho Group by Cbus Property; the latter was brought by UOL Group Limited from Host Hotels & Resorts and Plenary Group for approximately AU$230.0 million (US$176.5 million).

These deals indicate that mature markets like Australia remain attractive for investors who are looking for strategic, stable performing assets.

Although the investment volume recorded a QoQ improvement, investors in the Asia Pacific region have softened their expectations for the market. Investors are generally looking for more stable investments to mitigate growth outlook. As many Asia Pacific markets remain opportunistic, but with a potentially higher return than the global average, investors are taking a more cautious and calculative approach to choosing the right assets.

Click here to view the full Hotel Sales and Investment report from Savills Research.

See also:

Savills release Australia’s Hotels market report March 2017

Alternaty merges with Savills Hotels, Asia Pacific