Monday, October 7, 2024 Hong Kong investors are turning to Japan’s hotel market as tourism surges and investments hit record highs, driven by favorable conditions and growing demand. Japan’s favorable low-interest rate environment and its growing appeal as a premier tourist destination are set to drive a surge in investments in the country’s hotel sector, projected to hit unprecedented levels this year. For Hong Kong-based investors, Japanese hotels present a compelling opportunity for portfolio diversification.
With economic slowdowns affecting Hong Kong and mainland China, along with mounting geopolitical tensions between Beijing and the West, Japan’s hospitality market stands out as a stable alternative. Investments in Japan’s hotel market are expected to reach a record-breaking 600 billion yen (approximately US$4.1 billion) by the end of this year, according to data from JLL.
As of mid-year, the property consultancy had already facilitated hotel transactions totaling 378 billion yen, marking a 64% increase compared to the same period last year. Japan has emerged as the top real estate investment destination in the region for the first half of the year, attracting US$13.5 billion in total investments.
Of this amount, US$2.6 billion came from international investors, according to CBRE. China, in second place, saw US$13.
3 billion in investments, with US$900 million sourced from foreign entities. Prominent investors in Japan’s hotel market include Hon Kwok Land In.
