DUBAI: Middle East investors splurged more than US$3.5 billion in the international hotel sector in 2006 and are on course to double this investment to more than US$7 billion in 2007.
These findings were revealed at the Arabian Hotel Investment Conference (AHIC) by global hotel investment advisors, Jones Lang LaSalle Hotels.
Asia continues to be the main growth region in terms of hotel investment, delegates to AHIC were told.
“We favour China and India as potentially broad and deep markets particularly in the budget sector,” said Richard Johnson, Istithmar Hotels managing director of real estate.
“Elsewhere in Asia, the high end resort markets in Thailand are attractive. We have recently secured the first W hotel in South/East Asia in Koh Samui. Thailand deserves its status a one of the main global tourism destinations,” said Johnson.
He said powerhouse businesses were being created by the liquidity generated by high oil prices and the growing inherent wealth of the Middle East region.
Johnson saw huge opportunity in Asia, but he advised caution when considering capital investments.
“Hotel investors needed to consider the same basic fundamentals that any investor must ask: Does the investment fit with my portfolio? Can I create extra value to ensure an acceptable level of return? And is the level of risk acceptable?”
Jones Lang LaSalle said Middle East investors accounted for more than five per cent of the total international hotel investments in Asia Pacific in 2006.
by Ian Jarrett
