news/cms/202410/23/news-p.v1.20240605.0791b15c5376419ab17571a6a8ac332d_R.jpeg" data-width="647" data-height="1024" /> Enlarge photo Conrad Seoul Hotel[사진 출처 = JLL코리아]
Korea’s hotel market is strong this year, driving hotel investment in the Asia-Pacific region.
According to an analysis by JLL, a global real estate solutions company, on the 23rd, Korea is the third largest hotel investment market in the Asia Pacific region after Japan and China, recording a transaction volume of approximately $1.1 billion in the first nine months of 2024.
JLL expects additional hotel transactions to be concluded by the end of this year, and thus forecasts that the total transaction volume in 2024 will reach approximately $1.3 billion.
These achievements of the Korean hotel market are in line with hotel investment trends throughout the Asia-Pacific region.
Cumulative trading volume in the Asia-Pacific region in the first nine months of 2024 was $9.05 billion, up 15% from the same period last year and equivalent to 90% of 2019’s trading volume.
“The strong recovery and growth potential of the hotel market in the Asia-Pacific region, including Korea, is attracting the attention of investors,” said Kim Min-joon, director of JLL Korea’s hotel division. “In the case of Korea, the stable economic situation, steady increase in the number of international tourists, and high quality “Increasing demand for hotel assets is driving the investment market,” he said.
Japan has solidified its position as the region’s most attractive hotel market, recording transaction volume of $3.8 billion in the first nine months of 2024, with total transaction volume expected to reach $4.7 billion this year.
As of the end of September 2024, mainland China recorded hotel investment of $1.8 billion, up 6.4% from the previous year, with Shanghai and Beijing being the most active hotel investment markets, accounting for more than 50% of total transaction volume.
On the other hand, Australia has shown relatively poor performance of $629 million from the beginning of the year to date, and the total annual transaction volume is estimated to be approximately $1.1 billion. Hong Kong’s transaction volume is expected to be about $500 million in 2024, which is a decrease of about 35% compared to the previous year.
“The hotel industry in the Asia-Pacific region has moved beyond the recovery phase and entered a phase of organic and sustainable growth,” said Nihat Ulkan, CEO of JLL Hotel Group Asia-Pacific. “Despite short-term adjustments in some markets, the hotel industry as a whole has “has entered a new phase of growth,” he said.
Average daily rates (ADRs) in Asia Pacific have increased by 19% in local currency compared to their peak in 2018-2019.
JLL expects occupancy rates to return to pre-pandemic levels, with a strong recovery in business travel offsetting some of the decline in leisure travel.
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