EMERGING markets in South-east Asia are now looking up as investment hotspots again, helped by increased airlift and upgraded infrastructure, according to Jones Lang LaSalle (JLL).
Robust hotel transaction volumes in Asia hit US$620 million in 1Q2013, up 190 per cent from the same period in 2012.
“Rising visitor arrivals, robust trading performance and positive market dynamics have put emerging South-east Asian markets such as Vietnam, Cambodia and Myanmar back into the investment spotlight,” said Tom Oakden, executive vice president, investment sales for JLL’s Hotels & Hospitality Group.
Double-digit tourism growth was witnessed in Vietnam (15 per cent), Cambodia (25 per cent) and Myanmar (55 per cent) from 2011 to 2012.
Oakden added: “The affordability factor and capital growth prospects some of these markets offer when benchmarked against other more mature Asia gateway cities that have seen huge appreciation in recent years is also a driving factor.”
According to JLL’s release, the greatest potential lies in the Myanmar hotel market, which has benefited from a demand-supply imbalance to become one of the best performing hotel markets in Asia with strong RevPAR growth in Yangon and Mandalay.
Whilst Vietnam’s economy is in recovery mode, its medium- to long-term potential as an investment destination is being recognised, evident in the sale of two Life Resorts properties in Hoi An and Quy Nhon to the Minor Hotel Group in February.
With rising visitor arrivals but limited hotel supply in the key cities of Phnom Penh and Siem Reap, Cambodia is attracting the attention of both domestic and regional investors and developers from countries such as South Korea, Vietnam and China.
