JLL forecasts record year for Indian Ocean resort transactions

JLL forecasts Indian Ocean resort transactions to exceed USD 600 million for the first year

May 28, 2019

Port Louis, May 28, 2019 – Following strong resort operating performance, new investment sources and increasing global liquidity, JLL forecasts Indian Ocean resort transactions to exceed USD 600 million for the first year. Transaction volumes are led by the Maldives which continues to be the most liquid market, yet Seychelles and Mauritius have seen an increase in activity in recent years. 

Speaking at the inaugural JLL Indian Ocean Hotel Investment Forum in Mauritius, Nihat Ercan, Managing Director and Head of Investment Sales, Asia, JLL Hotels & Hospitality Group noted that "The search for yield and value outside of traditional core markets is causing investors to take note of the returns on offer in the Indian Ocean region. The Maldives is seeing an increase in global investors acquiring assets, whilst Mauritius is seeing a high level of institutional demand."

The forecasted trading volume of USD 600 million will be led by the Maldives at an estimated USD 450 million, with the balance expected to trade in the Seychelles, Mauritius and Sri Lanka. Ercan adds "We are confident that the strong returns to date will continue to see investor demand and sentiment rise during the coming years." Market fundaments continue to be strong due to improving airlift and a strong global tourism climate. The Maldives will see the highest level of new supply entering the market, whilst most of the Indian Ocean destinations are experiencing low supply growth.

Xander Nijnens, Head of JLL Hotels & Hospitality Group in Sub-Saharan notes that "Investors are increasingly looking at new frontier markets in the Indian Ocean beyond the Maldives and Mauritius, with Zanzibar, Madagascar and other emerging markets receiving high investor interest. There is a real opportunity to gain a first mover advantage in these markets, with hotel groups and tour operators looking for new experiences and destinations."

The JLL Indian Ocean Hotel Investment Forum in Mauritius was held Tuesday 28 May in partnership with BLC Robert & Associates, MCB Capital Markets, and Radisson Hotel Group. Speakers at the investment conference include the CEOs of Attitude Hotels, Beachcomber Hotels, Constance Hotels & Resorts, Grit, Lux Island Resorts, Minor Hotel Group, Sun Resorts and Veranda Leisure & Hotels. 

JLL is the leading real estate advisor in the Indian Ocean region and has led more than USD 1.3 billion in Indian Ocean sales since 2014, with more than USD 500 million in resort assets in the market today. For more information, visit www.jll.com.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com

JLL Hotels & Hospitality Group

JLL's Hotels & Hospitality Group (led by CEO Mark Wynne Smith) has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling more than $63.2 billion worldwide. The group's 350-strong global team in over 20 countries also closed more than 5,420 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.