or countries with strong domestic demand .
PAC ?
Sen Soon-Mun , Horwath HTL , Kuala Lumpur : The last few hotel transactions pre-pandemic have come from Singapore , mainly opportunistic acquisitions . The attraction is mainly local branded hotels that are underperforming as well as well-located properties .
Zoe Wu , Horwath HTL , China : Developers are restricted by the current “ three red line ” policy , which curbed their cash flow and thus the ability to buy . in 2019 , achieving a transaction volume of approximately US $ 9 billion worth of hospitality assets , indicating a 49 % decline year-onyear . As of year-to-date Q3 2021 , the transaction volume recorded remained relatively unchanged as compared to the Q3 2020 at approximately US $ 7 billion .
After a slowdown in 2020 , the hotel investment in Asia Pacific held up well in 2021 and is poised for a growth trajectory . In general , investor appetite for acquisition is high , although the transaction volume might be muted due to price gaps between the buyers and sellers . This is especially so in more stable property markets where the major players who own grade A hospitality assets have the staying power to tide through the COVID-19 period .
We are of the opinion that the increasing investor appetite is partially due to the current window for rebranding and refurbishment of newly acquired properties in anticipation for the return of travel . We foresee that there will be a slow , steady recovery in the region , with the travel industry gradually returning in 2022 , mainly driven by the vaccinated travel lanes and strong leisure demand .
The coronavirus pandemic has underscored the importance for investors to diversify their portfolio , whether the properties are located in gateway cities , resort destinations
Nikhom Jensiriratanakorn , Horwath HTL , Bangkok : I have seen strong investment appetite among both local and international investors , but mainly in key hotel markets , especially Bangkok . Investors are looking at a long-term investment horizon and anticipating a growth potential of the Thailand capital from many mega-projects such as One Bangkok , the Asiatique Expansion , and the Bangkok Mall on the back of ongoing infrastructure upgrades . Coming out of the pandemic , the Suvarnabhumi Airport ’ s midfield satellite concourse and the mass transit network expansion will be ready to alleviate traffic congestion and handle growing travel and tourism demand .
Mandeep Lamba , HVS , India : Although there are signs that investors are assessing hotel assets , buyer interest in India continues to be limited as yields remain stressed and borrowing for the sector has become even more challenging than before .
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