The Fiji hotel market has historically been characterized by limited investment activity. This insight was highlighted in the report titled “Fiji Hotel Market Dynamics July 2024” prepared by Jones Lang LaSalle (JLL), a leading global commercial real estate and investment management company.
The report was unveiled during the AHICE Fiji Investment in Tourism Summit held in Nadi earlier this week. JLL attributed the subdued investment activity to the limited opportunities available each year. Only in years marked by significant portfolio sales and major hotel or resort transactions has there been heightened investment activity.
The report noted, “Property transactions have increasingly become highly confidential, with sale details often withheld, resulting in a lack of transparency and an underestimation of annual volumes.”
Over the past 15 years, Fiji’s annual transaction volume has averaged approximately FJD $60 million, significantly boosted by portfolio sales such as those of Marriott in 2017 and Outrigger in 2018. The most recent significant sale was that of Mana Island in 2023, preceded by the JLL-brokered sale of Six Senses Mamanuca Islands.
Despite the market not exceeding the long-term average in the past five years and witnessing limited transactions in the last 12 months, the outlook is positive. The tourism and hospitality markets are resurging, driving new investment opportunities and potentially increased activity in hotels, resorts, islands, and land holdings.
“Compared to most other markets, Fiji’s investment fundamentals remain highly attractive,” JLL emphasized. “With extremely low interest rates, low inflation, relatively low yields, and high liquidity through growing offshore remittances, Fiji is poised for continued local and offshore investment.”
Traditionally, Fiji has drawn significant investments from Japan, China, and the United States, while also maintaining a robust local investor presence. This trend is expected to broaden with growing interest from investors in Australia and New Zealand.