Hospitality Asset Managers Association Asia Pacific (HAMA A/P) Predicts Asian Gold Rush As Hotel Owners Reposition And Reinvest In Properties

Real Estate Press Releases Friday October 19, 2018 14:22
Bangkok--19 Oct--hamagroup
Regional challenges create opportunities for visionary investors and strong demand for professional asset management, delegates hear at 2018 Global Leaders Meeting in Hong Kong

The Hospitality Asset Managers Association (HAMA) Asia/Pacific has predicted an investment "gold rush" in the Asia Pacific region as forward-thinking hotel owners reposition and reinvest in underperforming properties. HAMA chapters globally include members who are responsible for approximately 6,700 hotels with 1.4 million rooms.

At HAMA's 2018 Global Leaders Meeting, which took place in Hong Kong on 17 October, delegates heard that this potential wave of investment is being driven by a series of stiff challenges that are now facing many hotel owners in Asia Pacific.

The foremost challenge is the surging level of hotel room supply now being injected into the region. STR recently revealed that there are now over 370,000 new rooms under construction across Asia Pacific, and a further 350,000 in the planning stages. This influx is placing huge pressure on existing hotels to maintain occupancy and rates. In addition, ill-conceived developments, challenging locations and shifting market trends are causing hundreds of Asian hotels to underperform.

But from these threats, opportunities rise. According to HAMA A/P, hotel owners can succeed if they take decisive action, such as reinvesting in their own projects, repositioning them for a changing market, or even converting their assets to another use. There will also be opportunities to purchase and reposition underperforming hotels. Combined, these factors could lead to a potential gold rush of regional reinvestment.

In light of these trends, it is no surprise that an increasing number of hotel owners in Asia Pacific are turning to the services of professional asset managers, or bringing these experts in-house. Speaking at the 2018 Global Leaders Meeting, Eric Levy, Managing Director of Tourism Solutions International (TSI) and President of HAMA's Asia Pacific Chapter, revealed a sharp rise in the portfolios of HAMA's regional members.

"Our organisation in Asia has grown from nothing less than a decade ago to become a strong player within the industry regionally. Properties under the guidance of HAMA's members have regionally grown approximately 100 percent in total rooms over the past three years," Mr Levy noted.

Douglas Louden, Principal at Perceptions Hospitality and a HAMA A/P board member, added that the evolution of asset management in the market today is similar to what happened in the late 1980s, when owners became aware of the value of hospitality development consultants and started to use their services. "Owners and importantly lenders are quickly understanding the value of dedicated asset managers, and [are increasingly] adopting or demanding them," Mr Louden commented.

Mr Louden interviewed Brian Williams, Deputy Chairman of Swire Properties Hotel Holdings, at the Global Leaders Forum, in which they discussed Swire's successful launch of its own management platform and brands, and why the company did not engage with an existing hotel group.

In addition, Ram Nurani, Vice President & Head of Asset Management at Frasers Hospitality, moderated a high-level panel discussion entitled "Tools of the Trade – F&B Options", which featured Paul Hsu, Executive Director of Elite Concepts, Andreas Stalder, Senior Vice President of Product & Brand Development for Hyatt Hotels & Resorts - Asia Pacific, and Rohit Sachdev, Managing Director of Soho Hospitality.

Other reasons for the rise in asset management in Asia Pacific include the succession of family companies, whereby younger generations are taking control of assets from their parents and require expert guidance, and a general shift towards higher levels of professionalism within these businesses.

Asset managers provide expertise in numerous areas, including performance analysis, real estate financing and dealing with third party management groups. This latter issue is becoming an increasingly important factor, as the consolidation of the hotel management sector reduces levels of choice for hotel owners and increases the strength and negotiating power of major hotel groups.

HAMA now has more than 140 members in Asia Pacific, including third-party asset managers and the in-house asset management teams of hotel owners. Membership is split about 50/50 between these different categories.

For more information, please visit
From left to right: Eric Levy, Managing Director of Tourism Solutions International (TSI) and President of HAMA's Asia Pacific Chapter
Douglas Louden, Principal at Perceptions Hospitality and a HAMA A/P board member
Brian Williams, Deputy Chairman of Swire Properties Hotel Holdings

Latest Press Release

Nirvana Daii Launches the New Concept of Modern Living with the New Series of Nirvana Beyond

Nirvana Beyond Rama 9-Krungthep Kreetha project on the new prime location of Krungthep Kreetha Road Nirvana Daii Public Company Limited saw the opportunity and potential of Krungthep Kreetha Road as being a new prime location in eastern Bangkok and...

BHIRAJ BURI Teams Up with Banpu to Install Solar Rooftops in the Summer Lasalle Project Becoming a Pioneer of the Sustainable Office Concept

Photo Caption: Pitiphatr Buri (Second from left), Managing Director of BHIRAJ Management Co., Ltd. under the BHIRAJ BURI GROUP, Sarocha Buri (left), Deputy Chief Financial Officer of BHIRAJ BURI GROUP along with Kanokwan Jitchobtham (Second from right),...

SCG takes another step towards Circular Economy, partners with DITP and 3 Top Fashion Brands, launching Bag to the Future project Turning Unused Cement Bags into Limited-Edition Bags

SCG, the building-material innovation leader, led by Ms. Porawan Mahatanasuk, Customer and Brand Management Director at SCG Cement – Building Materials Company Limited took another step towards the Circular Economy concept that inspired SCG...

SCG and RISC team up on circular economy for research and develop to create value from unused construction materials for sustainable and environmental friendly living.

SCG represented by Mr Vichai Rairat, Sustainable Development Director for Living Solution and Housing Products Business of SCG Cement-Building Materials Company Limited, and Assoc. Prof. Dr Singh Intrachooto, Chief Advisor to the Research &...

Photo Release: U City appoints CBRE Thailand as its Sole Office Leasing Agent for The Unicorn

U City Public Company Limited, a diversified real estate investment and development company, announced the appointment of CBRE Thailand as the sole leasing agent for "The Unicorn", a mixed-use development located on Phayathai Road. The project consists...

Related Topics