Tag: Asia

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Asia-Pacific investors boost UK hotel spend over £1b

Investment into UK hotels has reached £3.22b in the first three quarters of the year, with Asia-Pacific buyers particularly active.

According to new research from Savills, despite volumes being down around 44% on the same period last year, the numbers are up 11.3% against the 10-year average of £2.89b.

This year has seen 97 deals take place according to the firm, a decrease of 49% from the 190 that took place in the same period in 2018. Overseas investment has accounted for £1.87b of investment so far this year, exceeding the 10-year average of £1.4b by 38%. While some international buyers have reduced activity levels this year, there is still significant interest and purchasing activity by buyers from Asia Pacific.

Asia-Pacific buyers have been the most active overseas investors to date in 2019, spending a total of £1.08b, representing 56.9% of total overseas activity. This is a tenfold increase compared to the volumes recorded over the same period in 2018 (£93m). The volumes are at their highest for the first three quarters of the year since 2015 when transaction volumes reached £1.13b.

Hong Kong investors have been the most prolific, spending a total of £947m to date this year (87.7% of total Asia Pacific volumes) making it the highest year on record in terms of hotel investment from Hong Kong buyers.

In terms of where capital is being spent, London attracted the most investment into the UK with £1.98b spent in the capital. The north followed with £465m, the south east at £430m, Scotland at £225m, the south west at £110m.

There has been an even split between portfolio and single asset transactions, with portfolios attracting £1.7b (53% of the total) and individuals £1.5b (47%).

Rob Stapleton, director in the hotels team at Savills, said: “Deal volume this year has undoubtedly been affected by global political uncertainty and wider global macro issues… while the UK’s regional markets have seen lower transaction volumes so far this year, we expect the ripple-effect of historically low yields in London to encourage investors into the more stable regional markets in the search for yield.”

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Growth set in Middle East and Africa for Marriott

Marriott International expects to add 19 new properties and more than 3,000 rooms to its Middle East and Africa portfolio in 2019. Underpinning a strong demand for its diverse brands, the new additions are in line with the company’s expansion plans to add more than 100 new properties and nearly 26,000 rooms across the region by the end of 2023. Marriott estimates its development pipeline through 2023 represents up to $8 billion of investment from property owners and is expected to generate over 20,000 new jobs across the region.

“Our growth across the Middle East and Africa is fuelled by a strong demand for our diverse range of well-established brands, each offering different attributes that cater to this region’s ever changing and evolving marketplace,” said Jerome Briet, Chief Development Officer, Middle East & Africa, Marriott International. “This region continues to present us with opportunities to further grow and enhance our portfolio across new and established markets. While the majority of our growth will be through new-builds, we are seeing an increasing number of conversion opportunities, especially in the luxury space.”

Year-to-date, the company has opened five new properties in the region and is expected to add 14 more – bringing its portfolio across the Middle East and Africa to nearly 270 properties and over 60,000 rooms – by the end of the year.

Unwavering Demand for Luxury Brands that offer Unrivalled Experiences

The company is poised to expand its luxury footprint in the region by more than 70 percent by the end of 2023, with more than 25 luxury properties under development. The company expects to grow its luxury portfolio in 2019 with seven anticipated openings across four brands:

  • With the recent opening of W Dubai – The Palm and the anticipated openings of W Muscat and W Yas Island, W Hotels should double its portfolio in the region.
  • St. Regis anticipates debuting in Jordan and Egypt with the openings of The St. Regis Amman and The St. Regis Cairo.
  • The iconic North Island is expected to of world-renowned hotels and resorts.
  • JW Marriott anticipates marking its entry into Oman with the opening of the JW Marriott Muscat Convention Center.

Substantial Growth across Premium Brands

The growth of Marriott’s premium brands remains steady across the region with more than 30 hotels expected to be added to the portfolio by the end of 2023. By the end of 2019, the company expects to have added four new hotels under its premium portfolio for the region:

  • The Autograph Collection anticipates marking its debut in Kenya with the addition of Sankara Nairobi.
  • Marriott Hotels and Marriott Executive Apartments strengthened its presence in Saudi Arabia with the recent openings in the Diplomatic Quarter of Riyadh. Marriott Executive Apartments is also expected to open a new property in Madinah later this year.
  • Marriott Hotels is also planning to open its second property in Algeria, in the capital city of Algiers.

In addition to the openings in 2019, Marriott is also focused on the transformation journey of Sheraton Hotels & Resorts, the company’s most global brand. In the region, Sheraton Jeddah Hotel and Sheraton Grand Hotel, Dubai are currently undergoing renovations that represent the brand’s vision for the future.

Regional Demand for Select-Service Hotels Continues to Fuel Growth

Currently representing over 40 percent of the company’s development pipeline through 2023, select-serve brands continue their rapid growth trajectory across the Middle East and Africa. Building on the momentum from 2018 – with ten properties added across the region, including four Aloft hotels in the UAE – the company expects to add seven new properties by the end of this year:

  • Four Points by Sheraton anticipates expanding its portfolio with a total of four openings in 2019.The brand recently opened properties in in Sharjah (UAE) and Setif (Algeria) and is on-track to open two more properties this year including, Four Points by Sheraton Dar es Salaam New Africa in Tanzania and Four Points by Sheraton Lahore in Pakistan.
  • Residence Inn by Marriott expects to make its debut in Algeria with the opening of Residence Inn by Marriott Algiers
  • Protea Hotels by Marriott plans to expand the brand in Uganda with the opening of Protea Hotel by Marriott Naguru Skyz.
  • Element Hotels is set to launch its first property in Africa with the opening of Element Dar es Salaam in Tanzania.