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New | Chinese investors may have short-term pullback in cross-border hotel investments after aggressive expansion last year

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The Lower East side of Manhattan is seen in this view from Brooklyn Bridge Park in New York. Chinese investors in overseas hotels may slow down this year after an aggressive expansion the last few years. Photo: AP

Chinese investors - mainly insurers and large funds - may launch a short-term pullback in cross-border hotel investments given volatile conditions and a slowing mainland economy, according to an industry expert.

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In 2015, Chinese capital is expected to represent some US$5 billion in global hotel investment,

making it among the top three exporters of capital globally along with the US and the Middle East, according to JLL’s Hotels & Hospitality Group .

This comes just years after China was not even in the top 10. The amount also accounted for nearly half of all cross-border investment out of the Asia region, the hotel consultant said.

Chinese insurance companies last year were active in hotel acquisitions such as the US$1.95 billion acquisition of the Waldorf Astoria New York.

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While JLL expects to see a short-term pullback among the insurance companies and larger funds, it said wealthy family conglomerates will continue to show a strong appetite to invest outside the country. Chinese investors are also starting to pursue secondary markets, said JLL.

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