A rising tide lifts all boats and it is expected that the strong flow of Chinese capital increasingly spilling hotel real estate assets this year, increasing the volume of transactions than fivefold to $ 5 billion.
Chinese buyers of tourism industries and airlines insurance and private equity firms on the continent seeking quality assets in many places, including the United States, Australia, South Korea, Europe and Russia, Clinton said Wu, vice president JLL executive hotel and division of investment abroad Hospitality Group.
JLL expects the international flow of capital from China in the hotel sector to total US $ 5 billion this year, compared to US $ 1 billion last year.
That would put the Chinese investors among the first places in the world, alongside the US and the Middle East.
A few years ago, China was not on the top 10 list.
"There are a lot of capital in search of limited resources," said Richard Kirke, CEO of CBRE for capital markets in Asia and the Pacific.
Kirke said international tourism numbers from China were increasing significantly worldwide, but particularly in Asia, where the yuan was also strengthening relative to many currencies.
The other attraction was the immediacy of improved profitability rate increase, while the competition was fierce in the office sector.
Hotel Transactions requiring major Chinese capital include the acquisition of Park Hyatt Melbourne by Fu Wah Group International and buying Anbang Insurance Hilton Waldorf-Astoria in New York.
Others include Sydney Sheraton on the Park, acquired by Sun Insurance Group, and the Paris Marriott Hotel Champs-Elysees, acquired by Kai Yuan Holdings.
Wu said Chinese buyers were also looking at other ways to enter markets, such as purchasing management companies.
"[Chinese companies] want to acquire hotel management companies, as they have no experience in managing an international hotel chain," he said. "If only the assets are acquired, but may not run correctly, [the goods] not act at the level they expect."
Buyers from mainland China could also further improve the business by bringing the brand to the mainland, he said.
Shanghai Jin Jiang International Holdings bought Louvre Hotels, which represents a network of 1,100 mid-market properties in dozens of countries, from the US investment group Starwood Capital last year.
HNA Group, the parent company of Chinese carrier Hainan Airlines, acquired an additional 8.3 percent stake in Spanish hotel management company NH Hoteles Italian bank Intesa San Paolo, in November last year.
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