Bangkok, S'pore vault past Bali for hotel investment

Bangkok, S'pore vault past Bali for hotel investment

SINGAPORE (DPA): Bangkok and Singapore have vaulted past Bali as the Asia-Pacific region's most attractive markets for hotel investment, a survey showed on Friday.

Bangkok and Singapore now top the region in terms of buying sentiment, at 58 percent and 55 percent respectively, the results found.

The results from the 750 hotel owners and investors surveyed indicated interest mainly in first-class hotels followed by tourist-class.

Buying sentiment in the region is strongest in the three hotly-contested markets, according to the survey conducted by Jones Lang LaSalle (JLL) Hotels.

The Indonesian resort island of Bali dropped from 100 per cent buying sentiment last year to 52 per cent amid political uncertainty across the archipelago.

The highest "sell sentiment" was for holdings in Jakarta at 43 per cent.

"The hotel performance levels are very poor in view of the uncertainty in the market," said Melinda McKay, JLL Hotels' senior vice-president.

The next highest sell markets are Manila and Ho Chi Minh City, both around 30 per cent. The hotel sector would be affected by any slowdown in the United States which results in a drop in corporate travel, McKay said.

In contrast to the previous survey results released in September, the latest showed a greater intent to hold hotel assets rather than buy new ones.