KUALA LUMPUR (July 3): The overall occupancy in Asia-Pacific remained low at less than 30% with room rates close to 50% of what they were in 2019, according to CBRE’s Implications for Asia Pacific Hotels June 2020 report.
“Lockdown restrictions across the region gradually began lifting in mid-May. Until regional and international travel becomes easily available, growth will be confined to domestic and drive-leisure markets. There has been a substantial uplift in interest in easily accessible resorts,” it said.
Regional travel remained at a standstill owing to tight restrictions by authorities, significantly reduced air traffic and risk aversion by travellers. In April, visitors to Hong Kong fell nearly 100% from the same month last year, reported CBRE.
It added, “Hotel investors are still in wait-and-see mode. There is a large gap between vendor and purchaser expectations. CBRE has not yet seen any significant transactions that indicate where prices now sit.
CBRE maintained its forecast of a global recession in 2020, with a sharp downturn in the second quarter of 2020 (2Q20) and the start of a rebound in 3Q20. According to the report, in May 2020, its Asia-Pacific gross domestic product (GDP) growth forecast was revised down to -1.4% from the previous forecast of 4.2% made in January.