INVESTMENT
INVITING OPPORTUNITIES AHEAD IN
Asia Pacific
by JEFF WEINSTEIN , EDITOR IN CHIEF
COVID-19 did not spare hotel transaction activity in Asia Pacific , where 2020 saw a precipitous drop-off in M & A activity . However , given the long-term interest in the region , experts expect a strong rebound as investors want to deploy more capital in the hotel space there .
In fact , JLL was forecasting approximately US $ 7 billion in transactions in 2021 , representing an increase of 20 % year-on-year , up from $ 5.8 billion in 2020 .
To take the pulse of the M & A market in Asia Pacific , HOTELS reached out to Singapore to get insights from Robert Hecker , Horwath HTL ’ s Managing Director Pacific Asia , as well as Eric Levy , managing director , Tourism Solutions International .
HOTELS : Offer your general outlook for increased M & A in Asia Pacific , and what will drive it ?
Eric Levy : We are already seeing transactions happen that I am confident would not have occurred but for the impacts of COVID . For example , look at Kintetsu , Glow Hotels and Resorts , and CK Ow considering sale of the Oz portfolio and others .
There will be others : management groups weakened by poor cash flow ; PE funds that want to resolve long positions that look like they will take years to approach underwriting ; properties / portfolios that will be sold to improve liquidity / reflect a change in view towards hotel assets and REITS ; listed players
30 hotelsmag . com May / June 2021