East Asia
Hong Kong investors turn to Japan’s hotels as funds, tourists soar to record high
Japan’s low-interest rate environment and its popularity as a tourist destination are set to boost investments in the country’s hotel segment to a record high this year.
For Hong Kong-based investors, Japanese hotels offer a solid diversification strategy amid a slowdown in the city and mainland China, as well as geopolitical risks between Beijing and the West.
Investments in Japan’s hotels are estimated to reach an all-time high of 600 billion yen (US$4.1 billion) this year, according to JLL. As of the first half, the property consultancy had already advised on 378 billion yen worth of hotel deals, a 64 per cent increase from the same period last year.
“Japan’s [solid] fundamentals continue to draw investment,” said Ada Choi, head of research for Asia-Pacific at CBRE.
In the first half, Japan was the top property investment market in the region, receiving US$13.5 billion, with US$2.6 billion coming from cross-border investors, according to data provided by CBRE. Second-placed China secured US$13.3 billion, with US$900 million from foreign investors.
Hon Kwok Land Investment, which owns and operates hotels in China and Hong Kong, and the Chiu family behind Hong Kong-listed developer Far East Consortium and Dorsett Hospitality International are among investors that have snapped up hotels in Asia’s second-largest economy.
