JLL Forecasts Asia’s Hospitality Investment in 2022 to Rise by 80%

• 28 September 2022
• Property Focus
• 1624 Views

Hotel investment in the Asia Pacific will continue to recover in Q4 of 2022 and into 2023 with more investors pouring their capital into the sector at the highest levels since the COVID-19 pandemic,

According to JLL’s Hotels & Hospitality Group’s Global Hotel Investor Sentiment Survey, global hotel investment is projected to rise by 80% in 2022.

Approximately 20% of investors indicated they will put between US$501 million to US$1 billion worth of capital into the hospitality sector, up from 7% of investors in 2021 and 16% in 2020, the survey added.

Over the next six months, 57% of investors prefer to invest in traditional hospitality property types, including full-service and select-service hotels.

82% of investors said they are targeting value-add investment opportunities, and 34% of investors are interested in creative hotels.

London, Tokyo, and Boston are the top three markets for hotel investment, pointing to the resurgence of investor interest in urban markets.

“Our projection of US$10.7 billion in total hotel investment in the Asia Pacific for 2022 remains unchanged, backed by improving sentiment on the long-term fundamentals of the industry in this region in the coming years,” said Nihat Ercan, Senior Managing Director, Head of Investment Sales, Asia Pacific, JLL’s Hotels & Hospitality Group.

• Tourism and Travelling