JLL closes US$106.1 mil Southeast Asia hotel portfolio deal

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JLL has closed a deal worth US$106.1 million ($142.55 million) for a portfolio of hospitality properties in Southeast Asia. The sale comprises of three different hotel properties – Pullman Jakarta Central Park, the ibis Saigon South and Capri by Fraser, both located in Ho Chi Minh City.

Investors have expressed great confidence in the fundamentals of the regional hospitality space, which further serves to emphasise the resurgence of deal activity and cash flow recovery of Southeast Asia’s hotels. Julien Naouri, the Senior Vice President of Investment Sales in the Asia Pacific region, with JLL Hotels & Hospitality Group commented on the sale saying, “The sale of this unique hotel portfolio not only underscores the resurgence of deal activity in Southeast Asia, but also reinforces the ongoing recovery of cash flows of hotels in the region.”

The Pullman Jakarta Central Park and ibis Saigon South were sold with the current Accor management under the Pullman and ibis brands respectively. The Capri by Fraser, however, was sold vacant possession. In spite of macroeconomic headwinds, the project was completed in a period of merely six months.

Nihat Ercan, Chief Executive Officer in the Asia Pacific region for JLL Hotels & Hospitality Group, noted the progress of the sale saying, “Despite macroeconomic headwinds, the project was completed within six months of its launch.”

This is another notable development in the hospitality space, with Hilton recently announcing plans to open three hotels in China, as well as the launch of their new premium economy brand – Spark 2022.

JLL’s transaction completion comes amidst turbulent times, with the Apac real estate investment figures down a reported 27% year-on-year owing to interest rate hikes and a cooling sentiment.

Overall, the success of this portfolio sale is a triumph for JLL and a vote of confidence for the current state of Southeast Asia’s hospitality industry.