Buyers outnumber sellers by almost 7:1 throughout Asia Pacific, and the Hotel real estate in Australia has begun claiming major international investors’ attention.

“While trouble in the global debt markets is expected to result in a lull in Australian hotel transaction activity in 2008, behind the scenes investor demand is building,” said Mr David Gibson, CEO Asia Pacific, Jones Lang LaSalle Hotels.

Sales of Holiday Inn Townsville and the Hotel Lindrum, as well as the Harbour Rocks Hotel have taken place in the previous months, coinciding with the release of the report of building investor interest.

“Hotels are being sold under competitive bidding processes where strong levels of interest are being received from offshore and domestic investors, as well as boutique property funds,” said Mr Craig Collins, Managing Director - Investment Sales, Jones Lang LaSalle Hotels.  He added, “In another vote of confidence for the sector, and despite the current credit crisis, recent hotel transactions support the survey results where initial yields range from 7.5% to 8.0%.”

While interest has declined on the short term as a result of recent economic woes world wide, the medium and long term view of the markets is promising, with many transactions and major growth forecasted in the months and years to come.

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