Hotel owners and operators are adjusting their operational and branding strategies in response to increased labor and utility costs, limited new supply, and the extended peak of the interest rate cycle.
According to new data from Knight Frank, there were 426 sales of properties valued at over $10 million in the first three months of 2024 across 11 tracked markets. This is an increase from the 365 sales in the previous quarter but represents a 11.6% annual decrease compared to the 482 sales in Q1 2023.
Based on new data by CBRE, Outstanding senior commercial real estate debt in Asia Pacific totals at least $257 billion, with a funding gap of $8.4 billion expected between 2024 and 2026. This is a much narrower gap than investors in the other major regions.
According to CBRE, strong domestic and international demand have established Korea as one of the top-performing hotel markets in the Asia Pacific region over the past two years.