Why Hong Kong's hotel investment growth could slowdown

Will it be the same for its Asian peers?

According to Savills, a number of deals that are in the negotiation stage could lead to an improved output for the rest of the year. It anticipates an increase of about 30% in hotel investment for the last quarter compared with the same period last year, and annual figures may increase by 9.0% over 2012.

The strongest growth in volumes for the whole of 2013 are expected to be in Japan, South Korea and Singapore with doubledigit investment volume growth, while decreases are expected in the markets of Hong Kong, Thailand and China, mainly due to the lack of prime products.

Here's more from Savills:

There is a rising influx of new funds to Asia Pacific, with sovereign wealth funds from the Middle East, international pension funds,opportunistic funds and other new players seeking opportunities in different Asian sectors. verall prime yield levels should remain stable, while investor confidence improves for the secondary markets.

We predict that prime yields may harden further in Singapore, Japan and Thailand, while we do not expect any major changes elsewhere until the end of 2013.