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Japan Valuers (Cambodia) Co., Ltd., hotel market survey for the first half of 2024
Our Cambodian subsidiary, Japan Valuers (Cambodia) Co., Ltd., has conducted a comprehensive hotel market survey for the first half of 2024, covering nearly 300 hotels across Phnom Penh, Siem Reap, and Sihanoukville. With tourism playing a vital role in the economies of ASEAN countries, we have observed a continued recovery in Cambodia’s tourism industry post-COVID-19. This recovery is expected to gain momentum, driven by the country’s rich cultural heritage and expanding air connectivity. With international hotel brands showing renewed interest and growing demand for quality accommodations, Cambodia’s hotel market will attract further investment and provide opportunities for further expansion and development.
However, our survey result reveals some surprising insights. Despite Cambodia’s potential for growth, the average occupancy rate remains low-hovering around 30% in the capital city, Phnom Penh, and below 20% in Siem Reap. The hotel market itself is still far from its pre-pandemic peak, with both owners and operators facing substantial challenges.
Interestingly, we have not seen a wave of distressed sales or “fire sales” of hotel properties because the market is not functioning and there are few opportunities to match with interested investors and financial institutions. Yet, many properties are relatively new, located in prime areas, and present excellent investment potential. As such, we are confident in our ability to provide valuation reports that effectively express the potential for future cash flow improvement, even though the income approach is rarely utilized in the local valuation practices.
We invite you to dive deeper into our latest Hotel Market Survey Report, which details the recent ADR levels by hotel tier and provides valuable insights for future investment opportunities. Download the full report in PDF to explore our findings.
If you are interested in receiving detailed data and comp-sets for any of the hotel sample groups covered in this report, we would be happy to provide them to you for a reasonable fee. For those considering a specific hotel purchase in Cambodia, or you would like us to make an introduction, valuation, due diligence, or purchase price checks, please feel free to contact us and we will be ready to work together with our local offices to provide you with a proposal that best meets your needs.
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