In a recent study on hotel investment opportunities in Asia, HCA Consultants reviewed 16 countries in Asia for their Investment Potential in the tourism sector. This study was commissioned by a sovereign wealth fund and some of the studies results were permitted to be shared publicly.
With hotel investments in Asia at a five year high in 2014, Asia is once again a valuable commodity for Hotel Investments. However not all countries in Asia offer the same high benefits to investors.
During the HCA study on Hotel Investments in Asia, we evaluated 16 countries on their general investment and profit and value potential for Foreign Hotel Investors and generated a value list for our client.
We are not able to share all results of the study, however our client allowed us to share some highlights of the study publicly.
Our study took into consideration, cost of entrance into the Hospitality Market, cost of operation, potential profit and growth patterns as well as supply situation current and future and potential political influences on the market.
With all these factors considered the highest potential of hotel investment is currently in Indonesia as a general location, followed by Myanmar and Thailand.
Current High investment locations like China, Singapore and Japan, did not make it to the top of our list due to either oversupply or very high costs of entry into the market, while at the same time large investment locations like the Philippines are very much on a sector based growth path (most of the large scale hotel investments in the Philippines were Gaming and Casino related).
In general locations in South East Asia and the ASEAN countries in particular are considered high potential hotel investment locations, however some locations are considered more stable, while other locations offer high investment returns, however combined with much higher risks.