Otiam – Market Opportunity

Otiam, for now, is focusing on developing countries that show stable, fundamentally strong, robust, and positively outlook economies first, before expanding to other parts of Asia. We have the intention of investing in real estate, though partial to the hotel and tourism aspect. We intend to build tourist attractions like resorts and are making it available for anyone to invest and reap the benefits similarly to owning a resort.

A report made on the sixteenth day of February in the year 2017 by the JLL Hotels & Hospitality Group showed that Singaporean real estate market saw the influx of acquisitions and mergers the prior year of releasing the report. The acquisition and mergers included the Starwood Hotels and Resorts getting acquired by Marriott International, while Carlson Hotels was purchased by HNA Tourism Group Co. Ltd.
According to the report, the trend of mergers and acquisitions showed that hotel brands have noticed that to grow they need management and franchise contracts. They envisaged that more mergers and acquisitions will happen because of the benefits involved.
A lot of investors in Asia have continued to keep their eyes glued to the real estate industry.
In 2017, the investment in hotels remained at about US$8 to $9 billion, moving up the ladder from 2016’s US$8.5 billion. Not minding China’s tighter measures put in place to restrict outbound capital, China remains an important player in the world of real estate.
JLL, in its report, identified four trends in the Asia Pacific.
1. The first involves the thirst of Chinese investors when it comes to real estate.
Chinese investors have a large taste and appetite for real estate especially hotels. This translates to Chinese investors always being on the lookout for real estate investment opportunities outsiders China. Chinese investors never get tired of investing in markets in Singapore, Tokyo etc.
Though China’s restriction on outbound capital still exists and has reduced the volume of capital that has not topped Chinese investors from looking outside.
2. Another trend moves to Australia and Japan, countries that have been beeping highly on a lot of investors’ radar.
A lot of investors around the world are seeking real estate investments in Australia and Japan. The latter country is termed as one that might soon house one or more trophy asset deals and limited service hotel portfolios enter the real estate market. Australia is not left out, with a gaping need of hotels stemming up to cater for the large influx of tourists, especially in Melbourne and Sydney.
3. A major trend can be seen in the South East Asian Real Estate markets continuously generating a lot of interest in buyers from all over the world.
Investors have noticed a myriad of hot markets and they can be in South East Asian markets like Singapore, Hong Kong, Thailand and even Vietnam.
This trend came about because of the influx of tourists who have found those places interesting. Those countries have continued to report a strong growth in tourism.
4. The need for an alternative form of Accommodation continues to improve.
The hotel industry has continued to improve the way their businesses are run, and that can be seen in the partnerships being done with such platforms.

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