The Fiji hotel market has historically been characterized by limited investment activity each year, according to a report titled “Fiji Hotel Market Dynamics July 2024” by Jones Lang LaSalle (JLL), a leading global commercial real estate and investment management firm. The report was presented during the AHICE Fiji Investment in Tourism Summit in Nadi earlier this week.
JLL attributes the subdued investment activity to the few opportunities available annually, with notable investment years marked by significant portfolio sales and high-profile hotel and resort transactions. The report states that property transactions often involve high levels of confidentiality, with sale details withheld from the market, leading to a lack of transparency and underestimation of annual volumes.
Over the past 15 years, Fiji has recorded an average annual transaction volume of approximately FJD 60 million. Significant contributions came from major portfolio sales, such as the Marriott in 2017 and the Outrigger in 2018. The most recent notable transaction was the sale of Mana Island in 2023, following the JLL-brokered sale of the Six Senses Mamanuca Islands.
Despite the market not surpassing the long-term average over the past five years and a lack of material transactions in the past 12 months, the outlook remains positive. JLL highlights the current resurgence in tourism and hospitality as a driving force for new investment prospects in hotels, resorts, islands, and land holdings, suggesting a likely upswing in investment activity.
In comparison to other markets, Fiji’s investment fundamentals are highly attractive. The environment features extremely low interest rates, low inflation, relatively low yields, and high market liquidity fueled by growing offshore remittances, making Fiji an appealing destination for both local and offshore capital.
Traditionally, Fiji has attracted substantial investment from Japan, China, and the United States, alongside a strong local investor presence. This interest is expected to expand as new investment comes from regions like Australia and New Zealand.