Market Data

International Beat

Japan’s Big Deal

Hotel investors are focusing on the Asia-Pacific market, Japan in particular, according to JLL. Singapore-based Ascendas Hospitality Trust recently bought the 17-year-old Namba Washington Hotel Plaza in Osaka, Japan, for $87 million. It was one of seven Japanese hotel transactions JLL facilitated in 1Q14 alone, which totaled $190 million. Asian hotel investment volumes were up 218 percent YOY in 2013, with Japan recording the highest investment volume at $2.7 billion, up 480 percent over 2012.

“Toronto, the most expensive [office] market in North America, is the 14th most expensive market globally.”

—DTZ Research

Markets to watch

The hotel pipeline in the Middle East is at a six-year low, down 50 percent from its peak, according to Lodging Econometrics. Five franchises — Hilton, Starwood, Marriot, IHG, and Accor — account for 50 percent of the projects, the majority of which are being built in Saudi Arabia, Dubai, and Qatar.

Lima, Peru; Bogota, Colombia; and Panama City, Panama; along with Mexico City; Santiago, Chile; and Sao Paulo, Brazil; are fueling “record foreign direct investment and economic growth that will create a rippled effect of commercial activity throughout Latin America in 2014 and beyond,” according to JLL. Lima’s 2.8 percent office vacancy is driving a 40 percent increase in office stock by 2016. Bogota recorded $16.8 billion in foreign direct investment in 2013, which, along with a 4.5 GDP growth, is driving office demand. Panama City has a GDP growth of 7.6 percent in 2013 and office supply is expected to grow by 47 percent by 2016, due to the Panama Canal expansion.

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