Positive news regarding global vaccination programs and travel bubble arrangements have substantially improved investor sentiment. However, this positivity is yet to be reflected in the hotel market transaction volume this quarter.
Investor sentiment improves in Q1/2021
- In Q1/2021, the APAC hotel investment volume registered US$750.2 million across 23 transactions, down 73% year-on-year (YoY). All transactions were completed by domestic buyers. The top three performing markets this quarter were Japan, Thailand and China, together accounting for nearly 74% of the total regional sales volume. In addition, Thailand and Taiwan were the only markets that reported an increase in hotel transactional activity compared to the same period last year.
- Japan recorded fi ve public transactions totaling approximately US$228.0 million in volume, down 85% compared to Q1/2020.
- Thailand registered a portfolio sale worth of US$181.0 million, a signifi cant increase on the US$8.7 million recorded over the same period last year.
- China reported US$144.1 million in total volume across two hotel transactions, down 28% YoY.
Despite a wide bid-ask spread, buyer sentiment has improved in response to the global vaccination roll-out and talk of travel bubbles in the region. We anticipate seeing more opportunities emerging in the upcoming months on top of several high-profile pending sales.
Savills Research