The year 2014 saw hotel investment sales activity in Asia decline by 18% to just above US$7.5 billion ($10.2 billion) involving 146 deals. The average rate price translates into US$221,000 per key, according to JLL. Australia stood out as an exception, with transaction volumes reaching a record of $2.2 billion (up 86% y-o-y in 2014). Activity in Asia was dominated by Japan ($2.3 billion), Mainland China ($1.4 billion), Thailand ($388 million) and Malaysia ($292 million).

In Singapore, buyer activity decelerated significantly in the wake of record values per key recorded in 2013 involving The Westin and Grand Park Orchard. The sole transaction in 2014 was Hotel Grand Chancellor, which traded for US$198 million, or US$606,000 a key. Expectations of rising interest rates and low-yield environment in Singapore could deter investors in 2015 unless the current pricing disconnect between buyer and seller narrows, says JLL.