With hotel investment in Asia at a five-year low in 2020 due to the global pandemic, Asia has become a valuable commodity for re-investing in hotels. However, not all Asian countries offer the same high benefits to investors.
During the HCA study on hotel investments in Asia, we assessed 16 countries on general investment and profit potential and value for foreign hotel investors and created value lists for our client.
We are not able to share all results of the study, however our client allowed us to share some highlights of the study publicly.
Our study took into consideration, the cost of entrance into the hospitality market for each country, cost of operation, potential profit and growth patterns as well as current and future supply and potential political and global health influences in each geographical market.
With all these factors considered the highest potential in terms of value of investment and future growth potential of said investments currently Thailand holds the top spot as a general location, followed by Vietnam and Indonesia.
Original high investment locations like China, Japan and Myanmar and even the city states of Singapore and Hong Kong, did not reach the top of our list due to either continuing travel restrictions, oversupply. financial issues within the Real Estate market (China) or still high costs of entry into the market, while at the same time large investment locations like the Philippines are very much on a sector based growth path (most of the large scale hotel investments in the Philippines were Gaming and Casino related) only.
In general, locations in South East Asia and the ASEAN countries (excluding Myanmar) in particular are considered high potential hotel investment locations, however some locations are considered more stable, while other locations offer high investment returns, however combined with much higher risks.