Japan hotel market recovering after disasters: JLL
Jones Lang LaSalle (JLL) Hotels has released an update to Japan's Hotel Market After The Quake, a report that was initially released after the 11 March earthquake last year.
Titled FocusOn: Japan's Hotel Market After The Quake, the report underlines influential factors and trends which affect Japan's trading performance and capital markets.
The report noted that overall visitor arrivals from China continued to grow. In Q4 2011, Chinese visitors increased 13.2 percent over the same period in 2010. "Meanwhile, South Korea, which used to be the number one sourcing market to Japan, is struggling with (a) 45.6 percent decrease," it noted.
"While inbound volume to Japan is still in the recovery phase, Japan's lodging industry has overcome the negative impact caused by the 3-11 earthquake to a large extent by March 2012," said the report.
Although inbound volume is still 10 percent behind figures for the same period last year, December 2011's hotel performance for the Tokyo Full-Service Hotel sector rose 3.7 percent over the same period in 2010.
"The pace of the recovery is, in fact, much faster than our original estimation," noted the report.
Amid natural disaster, hotel sales transactions managed to grow from 42 to 55 last year, as "five were sold for redevelopment for non-hotel use and only two were sold at more than JPY5 billion (S$77,090,412)."
"We expect more transactions based on stabilised cash flows and cap rates this year," it added.
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