HOTELS & TOURISM | Staff Reporter, Japan

Hotel investments in Asia Pacific predicted to jump 15% to $8.5b

Find out which country willl stand out.

With regard to hotel investment outlook in 2015, Asia Pacific is expected to bring a steady increase of 15% more transactions, lifting deal volume to $8.5 billion.

According to a release from JLL, meanwhile, Japan will be the standout in the region, led by increased debt and investor confidence in hotel performance growth.

Further, Australia is expected to remain an active market as well: its stable government and rise in tourism and investment interest from China make it a continued safe haven for moderate growth.

Here's more from JLL:

2015: Loaded - A rising tide lifts all boats, and the strong flow of cross-border capital into hotel real estate assets is galvanising increased deal momentum.

We forecast global hotel real estate transaction volume to reach $68 billion in 2015. This represents a 15% increase on 2014 levels and the third-highest annual total on record.

Our projection comes on the heels of a robust 2014, when global hotel transaction volume reached nearly $60 billion, a 10% increase over the year before.

Private equity investors are fully loaded and under pressure to invest funds. Asian money, driven by outbound Chinese capital, is growing rapidly due in part to increased activity from insurance companies.

The confidence that investors and lenders have in global hotel market performance is expected to remain strong in 2015, with the year representing the highest transaction volume in eight years, as investors are ready to chase after top hotel deals.

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