Hong Kong is becoming a magnet for hotel investments after some investors snapped up assets on the cheap this year, banking on a recovery in tourism and shrinking room supply to brighten the industry outlook, according to property consultants.
“There is potential for that number to be significantly higher,” said Shaman Chellaram, senior director for Asia, valuation and advisory services at Colliers. “We expect hotel transaction volume to increase in the third and fourth quarters, with some outlier discussions taking place for larger assets.”
Hotel deals amounted to HK$2.82 billion last quarter, making up 45 per cent of the city’s commercial real estate transactions, according to data compiled by Colliers. It was the highest quarterly share on record, helped by distressed opportunities and demand.
