MARKETVIEW Asia Pacific Hotels, H2 2017 Transaction volume increases in 2017 amid steady regional hotel performance US$103.4 220 bps US$73.5 US$11.7 Bn* Including deals worth more than USD 10m each, and excluding related-party transactions HOT TOPICS Global economic growth outlook remains positive on the back of a fine showing in 2017 due to strong fundamentals. ECONOMIC GROWTH OUTLOOK IN ASIA PACIFIC REMAINS POSITIVE UNWTO projects global demand for international tourism to grow by 4.0% to 5.0% in 2018. Out of all the regions, growth is expected to be stronger in Asia Pacific at 5.0% to 6.0%. Hanoi leads RevPAR growth in local currency terms in 2017. Tourist arrivals continue to remain strong in Vietnam and it is expected to continue on growing with more international hotel operators expected to expand their presence such as Travelodge and Meliá. Investor demand remained solid as transaction volume increases. Outlook for hotel investment in Asia Pacific continues to be upbeat in 2018, although transaction volume is likely to moderate due to the lack of available stock. HEALTHY INCREASE IN INTERNATIONAL TOURIST ARRIVALS 2017 CBRE Research CBRE Ltd. 2017 1
Occupancy (%) Growth in tourist arrivals (%) MARKETVIEW Figure 1: Growth of International Visitor Arrivals by Region 9% 7% 5% 3% 1% -1% -3% -5% 2013 2014 2015 2016 2017 World Europe APAC Americas Africa Middle East Source: UNWTO, CBRE Hotels Figure 2: Growth of International Visitor Arrivals (2017 vs. 2016) Vietnam Indonesia Japan Thailand New Zealand Australia Singapore Hong Kong Taiwan South Korea (40.00)% (20.00)% 0.00% 20.00% 40.00% Source: Respective Tourism Authorities, CBRE Hotels Figure 3: Hotel Occupancy in Selected Key Markets in Asia Pacific 95% 90% 85% 80% 75% STEADY GROWTH IN ASIA PACIFIC HOTEL OCCUPANCY 70% 65% 2013 2014 2015 2016 2017 Asia Pacific Singapore Hong Kong SAR Tokyo Osaka Sydney Melbourne Seoul 2017 CBRE Research CBRE Ltd. 2017 2
Index (2011=100) ADR (ISD) MARKETVIEW Figure 4: ADR Across Asia Pacific (US$) 250 200 150 100 50 0 ADR IN LOCAL CURRENCY REMAINS RESILIENT 2016 2017 Figure 5: RevPAR Performance across Asia Pacific (Growth in RevPAR 2016 Y-o-Y Local Currency) Seoul Singapore Taipei Osaka Melbourne Tokyo Asia Pacific Bangkok Hong Kong SAR Sydney Ho Chi Minh City Auckland Hanoi (15.0)% (10.0)% (5.0)% 0% 5.0% 10.0% 15.0% 20.0% HANOI LEADS REVPAR GROWTH Figure 6: ADR Performance across Asia Pacific Local Currency (MAT Index 2011=100) NEW HOTEL PIPELINE REMAINS SIGNIFICANT 150 140 130 120 110 100 90 80 70 2011 2012 2013 2014 2015 2016 2017 Asia Pacific Singapore Hong Kong SAR Tokyo Sydney Seoul 2017 CBRE Research CBRE Ltd. 2017 3
MARKETVIEW MARKET PERFORMANCE OUTLOOK INCREASING SUPPLY OF HOTEL ROOMS IN JAPAN FOR 2020 OLYMPIC GAMES CHINA OUTBOUND TOURISM AND ITS IMPACTS ON TOURISM WITHIN THE REGION HOTEL TRADING CONDITIONS IN SOUTH KOREA AFFECTED BY POLITICAL TENSIONS THAILAND SEES CONTINUING GROWTH MOMENTUM SINGAPORE HOTEL OUTLOOK EXPECTED TO IMPROVE ALONG WITH GROWTH IN VISITOR ARRIVALS 2017 CBRE Research CBRE Ltd. 2017 4
Millions MARKETVIEW YEAR OF CHANGE AHEAD FOR AUSTRALIA POSITIVE HONG KONG HOTEL MARKET OUTLOOK AMID GROWTH IN INTERNATIONAL TOURISM HOTEL INVESTMENT MARKET IN 2017 Figure 7: Total Acquisition for Asia Pacific Markets 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2012 2013 2014 2015 2016 2017 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% Source: RCA, CBRE, Dec 2017 Asia Pacific Growth % *Including transactions that are worth more than 10 million USD each, and excluding related-party transactions 2017 CBRE Research CBRE Ltd. 2017 5
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