Hong Kong bags largest hotel deals in Asia Pacific in Q3

11 deals worth US$1.5b have been made so far.

Hong Kong has the largest volume of hotel transactions in Asia Pacific, with 11 deals made YTD worth US$1.5b, JLL revealed.

According to a press release, several transactions have the potential for conversion into residential or office space. Recently, hotel owners have been considering converting their assets given the strong demand for office space.

Japan and Thailand saw the second and third highest levels of activity in the region at US$1.2b and US$335m in transaction volumes, respectively.

"For investors, Hong Kong hotels are appealing because of the discounted rate per square foot when compared to other asset classes, something that has been a factor in some recent transactions. Hotels such as J Plus Hotel has already been purchased for conversation, likely into an office," said JLL Hotels & Hospitality Group head of investment sales Asia Mike Batchelor.

Overall hotel investment volumes in Asia Pacific hit US$5.3b in the first nine months of the year, down 22% YoY.

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