Investment in Maldives tourism exceeds US$200 million in H1 2022

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The Maldives tourism sector received US$205.5 million as capital investment during the first half of 2022, according to real estate and investment management firm JLL.

With its robust recovery since the reopening of borders in July 2020, the Maldives tourism industry “demonstrated its resilience in 2021 as a global gateway resort destination with hotels generally performing better than in 2019, despite the notable absence of Asian demand for much of the year,” JLL observed.

“That momentum has carried over into 2022 and in turn the market has continued to attract the interest of investors from Asia, Middle East and Europe. Overall, we are forecasting higher investment volumes this year on the back of marquee sales such as the W Maldives and Sheraton Full Moon Resort, with more sales currently underway for the second half of the year.”

JLL estimated investment volumes totalling US$6.8 billion in the Asia Pacific’s hotel sector for the first half of the year, up 11.9% from pre-pandemic levels of capital deployment. Japan (US$1.8 billion), Korea (US$1.7 billion), and Greater China including Hong Kong (US$1.6 billion) led the way with the most capital inflows.

“The resilience of Asia Pacific’s hospitality sector and reopening of borders have accelerated further in 2022, with pandemic-induced pent-up corporate and leisure demand ensuring that travel demand will soon be on par with pre-Covid levels. As a result, the two-year lull in investment activity has largely subsided, demonstrated by record levels of capital raised for deals across Asia Pacific gateway markets and resort destinations,” said Nihat Ercan, Senior Managing Director, Head of Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.

“A more sustainable recovery in travel will intensify the largest challenge faced by many investors of successfully deploying capital into investment grade product across the region. We remain steadfast in our conviction that total Asia Pacific hotel investment volume will cross the $10 billion mark despite the scarcity of assets coupled with macro and geopolitical headwinds that will continue to influence capital activity,” said Mike Batchelor, CEO, Asia Pacific, JLL Hotels & Hospitality Group.