Investors are confident in the long-term future of the Asia Pacific hotels market despite ongoing COVID-19 pressure on the tourism and hospitality sectors, said JLL. According to investors surveyed by JLL, approximately 70 percent say they are bullish on the Asia Pacific hotel market and are interested in deploying capital into the sector in 2021.
JLL is forecasting approximately $7 billion in transactions in 2021, an increase of 20 percent year-on-year, up from $5.8 billion in 2020. While sizable pools of capital are ready to be deployed, pricing and financing will become a larger consideration for investors. According to JLL, the gap between buyer and seller price expectations will narrow as distress becomes less likely, while sellers come to terms with the impact of operating cash flow on pricing. Over 80 percent of investors surveyed are eyeing discounts of 20 to 30 percent, while sellers are expected to move roughly 10 percent in asking prices. As optimism around recov
