JLL has released a list of hotel investment highlights across the Asia-Pacific region for H1 2019.
Investment activity for the first two quarters of the year remained “largely on par” with first-half 2018, the report found. Year-to-date transaction volume for the period reached $4.5 billion.
The report noted private equity firms and developers have been the most active buyer types across the region for the last 10 years at approximately 37 percent of the total transaction volume (as of the end of June). REITs and high-net-worth individuals also were “notably active” for the first half of the year, making up approximately 27 percent of the total transaction volume compared to 9.3 percent for all of 2018, according to JLL.
Most H1 deals were made by domestic purchasers, who drove almost 80 percent of the total capital invested in the region. While REITs were the largest domestic buyers, the report found private equity firms were the biggest cross-border purchasers at about 27 percent of the total cross-border volume during the period.
The report acknowledged the recent “trade tension” between the United States and China, suggesting assets in major markets make for safer investment opportunities in the face of economic uncertainty.
For the remainder of the year, JLL expects total transaction volume to match or exceed the $8.8 billion recorded in 2018.