Hotel properties in Japan, China, draw investors as travel fervour improves returns
Japan is the favourite investment target amid a surge in tourism, a weak yen and low interest rates
Hotels are proving to be the darling of many investors across the globe, as consumer zeal for travel continues despite economic uncertainties, according to analysts.
“The hospitality segment is seeing a silver lining after Covid,” said Sabine Schaffer, co-founder and CEO in Europe of Australia-based hotel investor and operator Pro-invest Group. “Hospitality was probably the least favourite asset class as world travel came to a halt following the surge of Covid, but it has become one of the more sought-after asset classes.”
More than half of 300 investors surveyed worldwide by CBRE earlier this year said they intended to buy more hotel assets this year than in 2023, while only 14 per cent expected to buy fewer hotels.
Top reasons cited for increased hotel investment included expectations of higher returns, price adjustments, distressed opportunities and a lower cost of capital.
About three quarters of the respondents also said they were most keen on opportunistic and value-added hotel assets this year.
