Sydney, February 13, 2002 � Despite a worsening of short term trading outlook, hotel investors in the Asia Pacific remain optimistic of recovery over the medium term, according to Jones Lang LaSalle Hotels' latest Hotel Investor Sentiment Survey (HISS).  The survey, which targets the world's 1,800 largest investors and owners of tourism properties, is the only global survey of its kind.

�This sentiment is echoed globally� said David Gibson, CEO-Asia Pacific, of Jones Lang LaSalle Hotels.  �Within two years all markets, led by Europe and the United States, are expected to return to pre-2001 levels�.

Comparing the region to Europe and the US, the Asia Pacific boasts the most positive short term outlook of all the regions.  Investors expect the region�s geographic isolation and the strength of certain economies to act as a cushion to the global economic slowdown.

As would be predicted, given the economic slowdown and the impact of September 11, the short-term outlook for occupancy and room rate in the Asia Pacific hotel markets has worsened from neutral in the previous survey (June 2001) to negative in January 2002.  The medium term outlook is however optimistic, with recovery expected in mid to late 2002. 

OCCUPANCY AND  ADR

The stand out trading performers in the short term are Shanghai and Beijing, which have withstood the economic downturn of the region.  A roaring medium term outlook for Beijing indicates that current investor interest is likely to accelerate in the lead up to the 2008 Olympic Games. 

Investors are also optimistic, over the short-medium term, for the Brisbane and Gold Coast markets.  Both markets have experienced strong domestic demand growth and anticipate minimal supply growth.

Expected to enjoy the most rapid turnaround in the short to medium term is Sydney, where residential conversions will reduce overall supply during 2002.
 

INVESTMENT INTENTIONS

Asia Pacific investors revealed an extremely low interest in selling assets (14.0%).   �This suggests that most owners are unhappy with current pricing levels and are unwilling to sell in a weak market.  It also shows confidence in future trading improvement� explained Mr Gibson.  �The survey shows that the majority  (46.7%) intend to hold onto their assets and ride out the current downturn in market performance, poised to reap the benefits of the upturn�.

The buy sentiment is the only strategy to have declined in favour since the last survey, reconfirming the expectation of further decline in trading performance.  Markets falling out of favour since our last survey are Tokyo, Seoul and Hong Kong as investors are discouraged by the lack of investment opportunities.

Whilst Beijing and Phuket, along with Seoul are the preferred destinations for the development of hotels, only 15.0% of investors in the Asia Pacific indicate they would build hotels in the current climate.
 

Jones Lang LaSalle Hotels, the world�s leading hotel investment services group, provides clients with value-added investment opportunities and advice. In 2001, its success story includes the sale of 7,972 hotel rooms to the value of US$1.3 billion in 39 cities and advisory expertise on 100,550 rooms to the value of US$26.3 billion across 255 cities. Jones Lang LaSalle Hotels� services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research.  Jones Lang LaSalle (NYSE: JLL) is the world�s leading real estate services and investment management firm, operating across more than 100 key markets on five continents.