Article - HVS Market Report Asia Pacific - By Hok Yean CHEE - The Market Snapshot: Asia Pacific 2023 highlights an overview of transaction activity in the region and presents 25 markets current hospitality landscape; each covering demand and supply dynamics, hotel performances, and key transactions.
In 2021, transaction activity in the Asia Pacific recorded a strong recovery, achieving a transaction volume of approximately USD13 billion worth of hospitality assets, indicating a 47.7% growth year-on-year. Similarly, from 3Q 2021 to 2Q 2022, transaction activity in the Asia Pacific has continued to escalate by 16.8% compared to 3Q 2020 to 2Q 2021. Specifically, growing interest in hospitality assets continues to be observed in markets such as Hong Kong SAR, China, Japan, Indonesia, Thailand, Singapore, and certain markets in the South-East Asia regions.
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In 2020, transaction activity in the Asia Pacific took a hit from the new high in 2019, achieving a transaction volume of approximately US $8.6 billion worth of hospitality assets, indicating a 41.8% decline year on year. Similarly, from 2Q 2020 to 1Q 2021, transaction activity in the Asia Pacific has continued to slow down. Despite the slow-moving transaction activity, growing interest in hospitality assets continues to be observed in regions such as Australia & New Zealand, China, Japan, South Korea, Taiwan, and certain markets in the South-East Asia regions. Photo: HVS
The slowdown is mainly attributed to the COVID-19 pandemic, leading to weak market performance and a cautious macro economical outlook with uncertainties. Investment interest is anticipated to pick up in late 2021 and 2022 as investors seize opportunities to tap on the gradual recovery of the tourism sector, albeit with a cautious approach.