Colliers reports that hotel sector remains in high demand across Asia
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Colliers reports that hotel sector remains in high demand across Asia
The Colliers International Asia Market Snapshot Q3 2017 research report summarises the Capital Markets across asia including the hospitality, industrial and office sectors focusing on deals and trends.
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SuppliedTourism volume in Thailand continues to rise, fuelled in particular by an increase in Chinese tourists. -
Supplied.Excelsior Hotel Hong Kong offered for sale. -
SuppliedIn Vietnam, the hospitality and industrial sectors are the ones to watch in Q4.
Colliers International reports that demand stayed robust for investment property across Asia in the third quarter. The increase in deal volumes in the major markets of Hong Kong, Singapore and Shanghai maintained strong momentum, again securing their position as the top three investment destinations in the region.
"The hotel sector remained in high demand, from large sized deals in Hong Kong to the healthy demand for hospitality assets in Vietnam’s main cities and attractive coastal locations."
The Hong Kong market has fared well in Q3 2017 with some large ticket size deals offered in the market. The two biggest draws of the market so far have been the offering of Excelsior Hotel and Langham Place that were both offered for sale. While the Excelsior Hotel was reported to have multiple purchasers participating in the private tender, Mandarin Oriental has decided to withdraw the Property from the market, citing bids not matching their pricing expectation or proposed transaction mechanism.
"Tourism volume in Thailand continues to rise, fuelled in particular by an increase in Chinese tourists, which is helping occupancy rates in the hospitality sector."
"In Vietnam, the hospitality and industrial sectors are the ones to watch in Q4. Core assets within the main cities are limited, with most transactions undertaken off market to local investors. Impending improvements to infrastructure will allow for faster and more convenient transport connectivity."
"Rapid and consistent growth in tourist numbers, both foreign and domestic, along with the newly reformed gambling laws, will strengthen the already healthy demand for hospitality real estate within the main cities and attractive coastal locations."
In Taipei Nice Enterprise Co. Ltd. purchased Nice Plaza in Chiayi City, a mixed-use complex comprising Nice Shopping Center and Nice Prince Hotel, for TWD4.83 billion (USD161m)
Vietnam saw Tien Phuoc Co Ltd sold their stake in Le Méridien mixed use Hotel and Office building for a price believed to be USD42 million to Mitsubishi.
Click here to view the full Colliers International Asia Market Snapshot Q3 2017.
See also:
National hotel performance continues to improve
