Hotel investors turns to Asia’s emerging markets for opportunities, says JLLH
The secret’s out:?Asia is a gem for hotel investment. According to Jones Lang LaSalle Hotels, investors are turning their attention to emerging markets in Southeast Asia again, on the back of heady hotel transaction volumes in Asia which hit $620 million in the first quarter of 2013, up 190 percent from the same period in 2012.
“Rising visitor arrivals, robust trading performance and positive market dynamics have put emerging South East Asian markets, such as Vietnam, Cambodia and Myanmar, back into the investment spotlight,” Tom Oakden, EVP, investment sales for Jones Lang LaSalle’s Hotels & Hospitality Group said.
Among the things helping to push investment in Southeast Asia is better airlift and upgraded infrastructure. It has enhanced the ease of travel and improved links to the rest of Asia. This is apparent in the double-digit tourism growth witnessed in Vietnam (15 percent), Cambodia (25 percent) and Myanmar (55 percent) in 2012, when compared with 2011.
“The affordability factor and capital growth prospects some of these markets offer when benchmarked against other more mature Asia gateway cities that have seen huge appreciation in recent years is also a driving factor,” Oakden said.
Vietnam is a leader. JLLH says that while the economy is in recovery mode, the medium to long-term potential of Vietnam as an investment destination is being recognized. This is evident in the sale of two Life Resorts properties in Hoi An and Quy Nhon to the Minor Hotel Group in February.
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Source: David Eisen (2013). Hotel investors turns to Asia’s emerging markets for opportunities, says JLLH, Hotel Investment News?http://www.hotelmanagement.net/investment/hotel-investors-turns-to-asias-emerging-markets-for-opportunities-says-jllh-20295 published Apr 29, 2013. Viewed Apr 30, 2013,