• Major hotel markets recorded relatively solid performance in H2 2019. However, the COVID-19 outbreak has cast a shadow over the Asia Pacific economy in the opening months of 2020, posing a downside risk to global growth.

 

  • The short term impacts on the regional hotel market have been significant and continue to evolve along with the development of the disease. A sharp decline in visitor arrivals resulting from travel restrictions is already impacting the hospitality sector.

 

  • As of mid-March, occupancy in many hotels is in the single digits, leading owners to implement cost-saving initiatives or close temporarily for refurbishment. Some hotels have reportedly closed completely while others will struggle to ride out this challenging period.

 

  • Asia Pacific hotel transaction volume registered approximately US$15.8 billion in 2019, an increase of approximately 10% over 2018. However, the COVID-19 outbreak is expected to have a considerable impact on purchasing activity in the short term.