Asia Pacific - HVS Hotel Valuation Index

The 2016 edition of the Hospitality Valuation Index (HVI) – APAC comes to light amidst a backdrop of global uncertainty, social restructuring and economic rebalancing. While skeptics might dismiss the moderate tone in favor of something harsher, we at HVS endeavor to capture and reflect fundamental and inherent changes rather than relying on hearsay that more often than not amplifies exuberance as well as paranoia.

Without doubt, the economic environment in Asia Pacific has indeed been short of being in the pink. With China, the region’s largest economy slowing down, on account of a decline in consumption levels, commodity prices have taken a hit, which in turn has adversely affected export driven countries such as Indonesia and Malaysia as well as economic sentiments at large. Regional pressures have been exacerbated by the decline in oil prices, which hit the lowest in decades triggering a dramatic reduction in exploratory activity by most oil companies, resulting in slowdown of capital inflow to the region. Adding to this was the rate hike by the Federal Reserve in the last quarter of 2015, which further led to capital outflow from emerging markets. Not only manufacturing-centric countries, but also Singapore, one of the most developed and service-centric economies in the region, got exposed to the residual ill-effects of economic turbulence, witnessing a decline in business activity.

Looking beyond ‘China and its side effects’, the region’s second-largest economy (and the world’s third largest), Japan, struggled with sluggish domestic growth of its own, amidst a deflationary environment. Even though the Japanese government launched a slew of policy measures to reflate the economy, its pace and effectiveness remains to be seen. India, on the other hand, was fairly resilient to economic vulnerability in the region. Even though the country’s stock market remains in bear territory, its economic fundamentals have shown improvement on account of the fiscal cushion provided by the reduction in oil subsidies, prudent monetary policy by the Reserve Bank, and an uptick in domestic consumption demand. Similarly, the Australian economy has been relatively decoupled, and has remained stable on account of an increase in production-related activities.

Market Value Change

Market 2017 2018
Agra
Significant value increase
Significant value increase
Ahmedabad
Significant value increase
Significant value increase
Bali
Stable values
Moderate value increase
Bangkok
Moderate value increase
Stable values
Bengaluru
Significant value increase
Significant value increase
Chennai
Stable values
Significant value increase
Colombo
Significant value increase
Stable values
Delhi
Significant value increase
Significant value increase
Dhaka
Moderate value decline
Moderate value increase
Goa
Significant value increase
Moderate value increase
Gurgaon
Significant value increase
Significant value increase
Hanoi
Moderate value increase
Moderate value decline
Ho Chi Minh
Stable values
Moderate value increase
Hyderabad
Significant value increase
Significant value increase
Jaipur
Significant value increase
Moderate value increase
Jakarta
Stable values
Moderate value increase
Kolkata
Stable values
Moderate value decline
Kuala Lumpur
Moderate value decline
Moderate value increase
Langkawi
Stable values
Moderate value increase
Maldives
Stable values
Significant value increase
Manila
Significant value decline
Moderate value decline
Melbourne
Stable values
Moderate value increase
Mumbai
Significant value increase
Significant value increase
NOIDA
Significant value decline
Moderate value increase
Osaka
Significant value increase
Stable values
Phnom Penh
Moderate value decline
Significant value increase
Phuket
Moderate value increase
Stable values
Pune
Significant value increase
Significant value increase
Siem Reap
Moderate value decline
Moderate value increase
Singapore
Stable values
Moderate value increase
Sydney
Stable values
Moderate value increase
Tokyo
Significant value increase
Significant value increase

Top 10 Previous Year

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Bottom 10 Previous Year

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Top 10 Current Year

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Bottom 10 Current Year

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Top 10 Next Three Years

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Bottom 10 Next Three Years

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