ACCOMMODATION - Asian hotels a hot buy

TTGasia.com, Jun 1 - 7, 2007

A “flush” of capital is chasing good hotel developments across Asia, with the money men singling out China, Singapore and Macau as among their hottest picks during a panel session at Jones Lang LaSalle Hotels’ conference recently. When asked where they would put their money, Dubai-based global private equity investor Istithmar managing director, Mr Richard Johnson, said he was keen on the budget sector in the growth markets of China and South-east Asia.

Jumeirah Group executive chairman, Mr Gerald Lawless, said Dubai had a good run in the last few years. This would probably be sustained over the next two to three years, then there might be a correction, he said.“From 15 to 16 per cent RevPAR (revenue per available room), it would go back to three to four per cent, then what? There would be tremendous pressure...there will be failures,” he said, urging investors to “do your sums” by keeping in check how much they were paying for the project, the industry’s cycle, etc.

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