SPECIAL REPORT
WILL ONGOING DISTRESS FINALLY DRIVE DEALS IN
ASIA
THE APPETITE IS THERE , BUT RECOVERY EXPECTATIONS ARE NOT YET CLEAR . MORE ACTIVITY IS EXPECTED IN JAPAN AND AUSTRALIA IN 2022 .
by JEFF WEINSTEIN , EDITOR IN CHIEF
Investment volume in Asia Pacific is expected to remain subdued in the first six months of 2022 and increase moderately in the second half of the year , according to Hok Yean Chee , president of Asia Pacific for HVS .
Chee says the broader market expectations are also positive as the world is adapting to the new normal and fuels hope for tourism recovery , albeit at a slower pace in 2022 . “ As the outlook of Asia Pacific becomes more certain , with governments adapting a ‘ living with COVID-19 ’ strategy , we see that there might be an overall increase in transaction volumes in 2022 as investors readjust their expectations ,” she says .
At the same time , Robert Hecker with Horwath HTL in Singapore thinks there will definitely be some increased activity in the first half of 2022 , but will mostly be focused in Japan and Australia . “ The rest of the region , I expect , will not see that much activity , except perhaps in the Maldives . There will only be a spattering of deals around Southeast Asia . It ’ s mostly a consensus on this ,” he said . “ There are a few players focusing on places like Thailand with high expectations , but I expect the opportunities will ultimately be limited .”
HOTELS spoke to multiple Asia Pacific M & A experts to get their take on 2022 deal activity .
WHAT IS THE APPETITE FOR ACQUISITION IN ASIA PACIFIC ?
Robert Hecker , Horwath HTL : There ’ s plenty of interest at the moment , mostly driven by expectations for some distressed or at least discounted pricing ( from 2019 levels ), combined with expectations that a full travel recovery will be happening region wide within the next two years … There ’ s definitely an optimism for M & A activity to accelerate . Buyers with local teams in key markets for deals will have an advantage .
Hok Yean Chee , HVS : In 2020 , transaction activity in the Asia Pacific took a hit from the new high
66 hotelsmag . com January / February 2022