13 March, 2013
With more than 5 per cent growth in tourist arrivals, the Asia Pacific region was the world’s fastest growing tourism market in 2012 amidst global economic uncertainties. Last year saw market recoveries in Japan and Thailand, while others in Southeast Asia, such as Myanmar, Cambodia and Laos are up and coming. Asian authorities, notably in Indonesia, Vietnam and Malaysia are beefing up strategic efforts to strengthen their tourism sectors.
In its latest report, CBRE Hotels and CBRE Research reported that Asian hotels saw positive performance metrics in 2012 overall, but at slower growth rates compared to 2011. Several countries like China, Vietnam and India saw declines in RevPAR due to softening of both occupancies and ADRs. Japan and Indonesia posted strong RevPAR growth due to large improvements in ADRs while Thailand’s RevPAR was helped by its strengthening occupancy.
Robert McIntosh, Executive Director, CBRE Hotels Asia Pacific said “The market has a large supply pipeline ahead with a concentration on upscale to luxury hotels. Singapore, Shanghai, Bali, Jakarta and Beijing will see the largest number of upscale and luxury rooms under construction. On the back of growing visitor numbers including intra-regional travel, we are confident the new supply will be absorbed with ease”.
Hotel investment sales in Japan accounted for over 40 per cent of the region’s turnover of US$5.54 billion in 2012. Southeast Asia remains high on investors’ radar, but limited properties available for sale means that the price gap between buyers and sellers persists. Looking ahead, the hotel REITs, particularly S-REITs will increase their acquisition activity to achieve more portfolio diversification.
Attachment: CBRE PR - Asia hotels held up well in 2012 due to strong tourism demand.pdf
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