Hotel investments in Asia have increased by 218 percent.

At the end of 2013, hotel investment volumes in Asia exceeded $7.5 billion, up 218 percent from the previous year and defying forecasts. Rent

According to JLL's Hotels & Hospitality Group, last year was the best year since the global financial crisis in 2007, with transaction volumes totaling $10.3 billion.

Savills, a real estate research firm, announced last month that Asia hotel investments reached a six-year high in 2013.

"Strong investor sentiment and, more importantly, the availability of quality hotel assets were key reasons for Asia's impressive sales volume in 2013, which was only hampered by the availability of additional stock as many owners increasingly hold off selling assets in anticipation of further market growth," said Mike Batchelor, managing director of JLL's Investment Sales, Hotels & Hospitality.

Singapore, Japan, and mainland China dominated the region's hotel investments in 2013, with Japan's total investment reaching $2.7 billion, up 480 percent from 2012.

In 2013, the hotel market in Singapore saw transaction volumes of $2.0 billion, which was more than ten times more than in 2012. The sale of the Grand Park Orchard hotel and Knightsbridge retail, according to JLL, was the city's largest single asset transaction to date.

China came in third, accounting for almost 13% of total investment activity, with $1.1 billion in deals, as investor confidence strengthened in the second half of the year as a result of increased government funding availability.

"Well-capitalized, inter-generational investors continue to rule mature hotel markets like Singapore, and as stock becomes increasingly scarce, investors are once again looking further afield at new and growing markets in the region in quest of more yield and capital growth prospects," Mr. Batchelor said.

Other areas, such as Hong Kong ($486.7 million, up 19 percent year over year), Thailand ($337.0 million, up 31 percent), and the Maldives, saw tremendous growth due to increased connectivity and greater outbound travel from mainland China, with transaction volumes of $267.6 million, up a whopping 614 percent year over year.

Due to fewer landmark transactions and portfolio agreements in major gateway areas, the business predicts sustained investment in Asia's hotel sector in 2014, although at a lower level.

According to Frank Sorgiovanni, vice president, Research & Strategic Advisory, Hotels & Hospitality, JLL, "Japan, Indochina, and the Indian Ocean may account for the majority of transaction volumes in 2014." "Investors are increasingly looking in new hotel markets such as Myanmar and Sri Lanka, where opportunities abound. The markets in Singapore and Mainland China will also stay strong due to strong investor demand."

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