Jan. 26, 2013--NEW DELHI -- Investments in Asia-Pacific hotels are projected to rise 6% to $3.5 billion in 2013 after a steep decline in the previous year, according to the Jones Lang LaSalle's Hotel Investment Outlook report released on Friday.

Investments had dropped 30% to $3.3 billion in 2012, the report said.

Bali, New Delhi and Mumbai are among the top 10 cities globally where investors want to invest in hotels, the report said.

More investors will look to buy or develop Asia-Pacific hotel assets in 2013 as they seek a foothold in the region, the report said. Appetite for acquisitions remain strong in Australia and China, the report said.

"While we are seeing strong investor appetite, sell intentions in Asia Pacific are the lowest of all the regions. This is attributed to a softening of yield and leveraged initial rate of return expectations," said Scott Hetherington, chief executive of Jones Lang LaSalle Hotels and Hospitality Asia. "Consequently, we expect transactions of existing assets to be broadly consistent with 2012 this year and pick up in 2014."

For the Indian hotel market, the report said that investment benchmarks are being established and the dynamics in 2013 will favour both buyers and developers with a slowdown in development activity and more opportunities for acquisitions.

Hotel supply in Asia is projected to increase by an average 5.5% annually across 23 major markets over the next two years, said the report.

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