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Hotel investors in Asia pivoting towards debt financing as owners look to shore up balance sheets
Research - MAY 7, 2020

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Hotel investors in Asia pivoting towards debt financing as owners look to shore up balance sheets

by Released

Hotels owners across Asia are seeking greater access to debt financing to bolster cashflows as they face an unprecedented period of historically low occupancy rates, closed borders and severe limitations on air travel due to the ongoing COVID-19 pandemic, according to JLL. The impact of COVID-19 on the hospitality industry across Asia continues to be significant, with many hotels and investors witnessing an unparalleled cash crunch as significantly constrained revenues struggle to offset fixed costs.

According to Adam Bury, executive vice president, and Corey Hamabata, senior vice president, of JLL’s Hotels & Hospitality Group, travel restrictions are forcing owners to look at an array of short-term financing options, but with abundant investment capital still available to be deployed, this temporary dislocation is expected to also create new opportunities.

In Asia, only a select few destinations and properties are achieving meaningful demand, often by providing

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