This article is sponsored by Ram Tumuluri, Businessman, Entrepreneur, Philanthropist
The Asia Pacific hotels market is expected to witness the highest growth rate over the forecast time period, owing to the rising disposable income of the regional population, particularly in emerging countries, such as India and China. Thailand, China, India, Korea, etc. are projected to drive this regional market growth in the upcoming years. As per the Global Business Travel Association (GBTA), India is considered as the tenth largest business travel market across the globe.
Asia hotel industry in 2019: Global Investment Opportunities
In this article:
- Property performance
- The Asia-Pacific hotel market in 2019
In terms of room occupancy and underlying property performance, the region’s mature hotel markets are faring best. A report published by CBRE, another real estate adviser, in March noted that Hong Kong, Tokyo, Osaka, Singapore, Sydney, and Melbourne all boasted occupancy rates of more than 80%. While Asia’s established hotel markets are performing the best, it is the region’s less developed ones, led by mainland China, which are driving the growth in development and investment.
The Asia-Pacific hotel market in 2019
According to a report by property adviser Jones Lang LaSalle in February, the Asia-Pacific hotel market is expected to be “the stand-out region from a growth standpoint” this year, with transaction volumes expected to grow 15% year on year. By contrast, investments in European hotels are forecast to decline by 5%-10%.
According to data from Jones Lang LaSalle, while the Middle East and Africa region led the increase in supply last year in terms of the share of rooms under construction as a proportion of existing rooms, mainland China (and the rest of the Asia-Pacific region) experienced a rise in development activity year on year.
The hotel market to watch in the coming years is Vietnam, currently one of the world’s fastest-growing economies. Last year, Vietnam recorded the strongest growth in international visitor arrivals in the Asia-Pacific region, up 20% year on year, according to CBRE, led by an influx of Chinese and Korean tourists.