Japan’s hotel sector to shine brightly as investors look to cash in on Tokyo 2020 Olympics
- JLL expects total transaction volumes in Asia to reach US$9.5 billion this year, up 15 per cent from US$8.3 billion in 2018
The US-China trade war, volatile equity markets, geopolitical tensions and uncertain pace of future interest rate increases are among factors that will hold back investors from the hotels sector this year, according to a JLL report.
But in the run-up to two major events soon to be hosted in Tokyo, Japan stands to remain something of an exception.
Japan, which was the top market for hotel deals last year, is expected to lead the region again this year on the back of the Rugby World Cup and the Tokyo 2020 Summer Olympic Games.
“Japan’s hotel market has captured investor interest globally,” said Nihat Ercan, head of hotel investment sales in Asia for JLL’s Hotel and Hospitality Group. “Nearly 30 per cent of all investment into Asia-Pacific was in Japan, overtaking China in the top spot.”
The property consultant expects global hotel transaction volumes to drop slightly this year to US$67.2 billion from US$67.7 billion in 2018.