Japanese and Chinese Hotel Properties Attract Global Investors Amid Tourism Boom and Favourable Economic Conditions

Investors are attracted to hotel properties in Japan and China as returns improve with the increasing travel enthusiasm. Japan is particularly appealing for investment due to its booming tourism industry, depreciating yen, and low interest rates.

Despite economic instability, the enthusiasm for travel among consumers remains strong, leading to hotels becoming an attractive investment opportunity worldwide, as per industry experts.

Sabine Schaffer, the co-founder and CEO of Pro-invest Group, an Australian hotel investment and management company operating in Europe, mentioned that the hospitality industry experienced a ray of hope post-Covid. She added that while the hospitality sector was somewhat disregarded as global travel stopped due to the Covid outbreak, it has since evolved into one of the more desirable investment classes.

Over half of the 300 global investors polled by CBRE earlier this year mentioned their plans to increase their hotel acquisitions in comparison to 2023. On the other hand, a mere 14 per cent anticipate a decrease in their hotel purchases.

The primary factors contributing to a surge in hotel investment include the anticipation of greater profits, price modifications, opportunities provided by financially troubled properties, and reduced capital costs.