asia pacific market update...2019 investment activity charged by japan, singapore & china...
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JLL Hotels & HospitalityJune 2020
ASIA PACIFIC
Market UpdateTHAILAND TOURISM FORUM 2020
2019 investment activity charged by Japan, Singapore & China
AustraliaUSD 1.3bn
0.3%
SingaporeUSD 1.44bn
583%
ChinaUSD 1.74bn
3%
South KoreaUSD 1.37bn
55%
JapanUSD 4.85bn
90%
Hong KongUSD 938m
22%
IndiaUSD 670m
MaldivesUSD 438m
1,268%
TaiwanUSD 461m
1,925%
VietnamUSD 333m
ThailandUSD 116m
79%
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Sri LankaUSD 57m
660%
JLL Most Active Markets
Asia Pacific Historical Investment Growth 2015- 2019
-
2
4
6
8
10
12
14
2015 2016 2017 2018 2019
US$
Billi
ons
Japan Singapore ChinaSouth Korea Australia Hong Kong
^ Vietnam do not have comparable y-o-y dataSource: JLL
Other
$13.8+61%
$8.6-22%
$11.1+22%
$9.1-9%
$10.0+23%
3
412%
2019 Transaction Volumes Map
AND THE MUSIC STOPS…
4
CO
VI
D -19
2020 APACINVESTMENT VOLUMEFORECAST
USD
10 BN~
2020 APACINVESTMENT VOLUMERE-FORECAST
YTD MAY
USD1.8 BN-63% YOY
USD
4 BN-60%
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Key takeaways
Demand• double-digit 2020 RevPAR declines to challenge recovery • domestic demand to lead recovery (leisure, road trips)• group demand to lag (need for reinvention?)
Supply• pipeline to decline• oversupplied markets to add pressure on market recovery• conversions or re-branding efforts under review
Valuations and transactions• lack of price discovery given overall industry distress/stress• longer stabilization period• lack of market comparable data (e.g. cap rate movement)
Operations• disciplined cash flow management• change in operating standards – health and safety• uncertainty in forecasting – demand, staffing
Opportunities• industry consolidation• asset mispricing and need for liquidity àacquisition prospects• strategic asset repositioning
Industry house view l COVID-19 impact on hospitality
Source: JLL Research
What trends are emerging and what is the industry outlook?
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So what does it mean for
Values in
Bangkok?
Nihat ErcanManaging Director Head of Investment Sales Asia PacificHotels & Hospitality Group