Given "volatile conditions and a slowing mainland economy," insurers and large funds from China may launch a short-term pullback in international hotel investments, according to a report from JLL’s Hotels & Hospitality Group published in the South China Morning Post.
In 2016, Chinese capital is expected to represent some $5 billion in global hotel investment, making it among the top three exporters of capital globally along with the US and the Middle East, the report claimed, accounting for nearly half of all cross-border investment out of the Asia region. Not so long ago, China was not included in the top 10.
While JLL expects to see a short-term pullback among the insurance companies and larger funds, it said wealthy family conglomerates will continue to invest outside the country, often in secondary markets, the report claimed.
Beyond individual assets and portfolios, JLL expects mainland Chinese outbound capital (and Asian capital as a whole) to go after brands, platforms and operating companies. All of these, the report claims, are "opportunities to gain scale and control cross border leisure and travel sectors."