SYDNEY Sales activity in the hotel sector for 2000 nearly doubled over 1999. Much of this was due to north-Asian divestment, according to Jones Lang LaSalle Hotels. Japanese owners relinquished $41.75 million worth of hotel assets in 2000, comprising 45.4% of total sales value. Australian and Hong Kong investors were also active sellers in 2000, representing 33.3% and 12.8% of total sales value respectively. Singaporian and Malaysian investors made up the remaining.
Jones Lang LaSalle Hotels recorded a total of 21 hotels with 5,427 rooms sold in 2000 for more than $919 million, compared to 1999 when total value of sales achieved only $479 million. The higher sales value is a factor of the number of four- to five-star properties exchanged. These assets represented 95.7% of total sales value in 2000 as opposed to 73.7% in 1999.
Domestic property trusts, both listed and unlisted, dominated the buyer landscape, a trend that will continue in 2001. Also present this year were family-owned companies such as Selpam and Summit Hotels Pty Limited who have incrased their net worth over recent years and are now buying bigger assets. $300 million worth of transactions are poised to go through during the first two months of 2001. (1/23/01)