Hotels Investment Opportunities in Japan and China Thrive Amid Travel Revival

Investors Flock to Hotel Properties in Japan and China

Hotels investment is gaining momentum as travel enthusiasm skyrockets post-Covid. Notably, Japan is emerging as a top destination for hoteliers and investors, fueled by its rich culture and diverse offerings. With higher returns anticipated, more than half of the surveyed 300 investors by CBRE express intentions to acquire additional hotel assets this year.

Key Drivers of Hotel Investment

• Revenge Travel symbolizes consumers compensating for lost experiences during the pandemic.
• Young travelers prioritize memorable adventures over ownership, favoring hotel investments.

Participants like Gaw Capital praise the customer-oriented nature of hotels, implying resilience even in downturns, particularly in the upscale luxury segment. Simon Manning from Nina Hospitality reaffirms the strong recovery in margins, ensuring hospitality remains an attractive sector.

Japan: The Investing Frontier

Interest in Japan strengthens with a 0.25% interest rate and rising tourism driven by local and overseas visitors. As Tokyo aims for 60 million tourists by 2030, economic benefits are expected to surge, with market opportunities flourishing.

China's Resilience in Hotel Investment

Even amidst a challenging economic landscape, China is captivating property investors. Brands like Radisson Hotels continue to expand, targeting the midscale and upscale segments.

Mandarin Oriental Hotel Group recently opened a new hotel in Beijing, capitalizing on experience-driven preferences within the Asian market, enhancing the competitive investment landscape.

Southeast Asia's Promising Investment Climate

Countries in Southeast Asia present additional opportunities due to strong economic growth and a young, dynamic population, reinforcing optimism for hotel investments in the coming decade.