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