Investment follows recovery in Asia Pacific

Financial institutions are more willing to invest in hotels in the far north and south of the Asia Pacific region than in the south-east, said one of the joint hosts of the region's 11th annual hotel investment conference at the JW Marriott hotel in Hong Kong.

Robert Stiles, managing director of real estate investment banking firm Sonnenblick-Goldman Company, said this largely reflected a growing polarisation between the countries that were recovering from the economic crises that swept the region three years ago and those that were not.

He said the black spots included the Philippines, Malaysia, Indonesia and Thailand, where the hotel markets were "extremely soft".

Hotels in Hong Kong and Singapore were, he added, faring well. Occupancy levels were recovering, and room rates, although still lower than in previous years, were starting to grow.

According to Stiles, other areas exciting interest include Australia and Hawaii.

Hawaii is staging a strong recovery, with a pick-up in arrivals from North America and Japan.