Hotels in Asia-Pacific likely to see surge in investment this year as coronavirus restrictions ease, JLL report says

Name: Hong Kong businesses cry foul over abrupt return to anti-Covid-19 social-distancing rules
Uploaded: 2022-01-26T01:30:20.000Z
Duration: 4 min 9 s
Description: Hong Kong businesses cry foul over abrupt return to anti-Covid-19 social-distancing rules

Hotels in the region may receive investment of more than US$9 billion this year, up 30 per cent from 2021, says property consultant

Hospitality has been one of the pandemic’s most battered segments as states closed borders to stem the spread of Covid-19

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Fitch forecasts that the global hotels sector will see a gradual improvement this year compared to 2021. Photo: Felix Wong

Cheryl Arcibal

Published: 9:30am, 26 Jan 2022

Hotels in Asia-Pacific are likely to receive investment of more than US$9 billion this year, a 30 per cent increase from 2021, as countries begin to ease their Covid-19 restrictions and some confidence returns to the hospitality sector, according to JLL.

The higher investment in the segment is just one of the themes likely to dominate the property sector in the region. Total capital outlay is expected to hit around US$200 billion, a 15 per cent rise from the full year estimate for 2021, the property consultancy said in a report.

The forecast comes despite renewed uncertainty over the societal and economic impact of Covid-19 with the Omicron variant wreaking havoc across the world as it drives a new surge in infections.

“Asia-Pacific’s real estate markets will be stronger in 2022, as investors maintain their bullishness and leasing activity continues to recover,” said Anthony Couse, chief executive officer for Asia-Pacific, JLL, in a separate statement emailed to the Post.

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Hong Kong businesses cry foul over abrupt return to anti-Covid-19 social-distancing rules

“It’s clear that the path to economic recovery is not a straight one, but we’re hearing from our clients that they have confidence in the future of office-based work. Investor sentiment is positive, though uncertainty remains the reality and will be factored into any decision-making this year.”

Hotels have been one of the pandemic’s most battered segments as states closed borders to stem the spread of the disease that has killed 5.6 million across the globe so far, according to the latest figures from the World Health Organization.