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Hong Kong investors turn to Japan’s hotels as funds, tourists soar to record high
Japan’s low interest rates and booming tourism are attracting investors like the Chiu family and Dorsett Hospitality International.
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Japan’s low-interest rate environment and its popularity as a tourist destination are set to boost investments in the country’s hotel segment to a record high this year.
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For Hong Kong-based investors, Japanese hotels offer a solid diversification strategy amid a slowdown in the city and mainland China, as well as geopolitical risks between Beijing and the West.
Investments in Japan’s hotels are estimated to reach an all-time high of 600 billion yen (US$4.1 billion) this year, according to JLL. As of the first half, the property consultancy had already advised on 378 billion yen worth of hotel deals, a 64 per cent increase from the same period last year.
“Japan’s [solid] fundamentals continue to draw investment,” said Ada Choi, head of research for Asia-Pacific at CBRE.
In the first half, Japan was the top property investment market in the region, receiving US$13.5 billion, with US$2.6 billion coming from cross-border investors, according to data provided by CBRE. Second-placed China secured US$13.3 billion, with US$900 million from foreign investors.
Hon Kwok Land Investment, which owns and operates hotels in China and Hong Kong, and the Chiu family behind Hong Kong-listed developer Far East Consortium and Dorsett Hospitality International are among investors that have snapped up hotels in Asia’s second-largest economy.
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