SPECIAL REPORT
assets might become nonperforming if this situation continues in 2022 . If such a case occurs , such non-performing assets will be put on transaction market and the number of deals will increase accordingly .
WHAT IS THE STATE OF THE FINANCING CLIMATE ( DEBT AVAILABILITY )?
Hok Yean Chee , HVS : Debt across the Asia Pacific remains freely available , although banks may have preferences for lending to certain sectors instead of hotels . Lending for development projects is likely to tighten . Most lenders are more cautious towards hospitality assets . There has also been a rise in alternative capital providers , especially in North Asia , where private credit funds and asset management companies have been providing significant funding for investment deals . As outbound investment activity recovers , it will also bring in more lending opportunities into the market .
We feel that the players who are primed to capture the market will be those with a strong financial backing and who have a strong sustained financial record .
Sen Soon-Mun , Horwath HTL , Kuala Lumpur : Currently , extremely difficult . Tourism funding is available from government-linked banks , but the amounts available are insufficient .
Nikhom Jensiriratanakorn , Horwath HTL , Bangkok : The debt market is being tightened as banks remain cautious about lending to hospitality assets . Loans for new projects ,
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 .
– MANDEEP LAMBA
72 hotelsmag . com January / February 2022