The outlook - hotel industry

Business Asia, May 31, 1999

Following is an overview of the hotel industry in Asia-Pacific nations, according to Jones Lang LaSalle.

Beijing -- Experiencing an oversupply of hotel rooms. Government divestments of non-core, state-owned enterprises may present a number of opportunities in 1999.

Hong Kong -- Concerns raised about Hong Kong's ability to attract tourists as its "colonial outpost" appeal no longer exists.

India -- New hotel developments for 1999 are limited to projects already under way. Market sentiment remains cautious until political stability is achieved.

Indonesia -- Hotel transactions are expected to begin again in mid-1999, after the elections.

Japan -- The market is considered ripe for acquisitions this year, with foreign investment restrictions loosened and low interest rates imposed.

Malaysia -- Hotel values are significantly down, but investors are cautious because of a hotel oversupply and the lack of transparency in the financial system.

Philippines -- The Manila market is unlikely to have a large number of hotels for sale in 1999 because there is no oversupply problem.

Singapore -- The Singapore investment market is expected to remain sluggish until operating levels recover.

South Korea -- With foreign investment regulations loosened and foreign ownership restrictions lifted, Korea is shaping up to be a prime investment destination.

Thailand -- Banking sector changes may stimulate sales this year, with Bangkok and Phuket among the most attractive markets.