Australian hotel returns fall but still top regional property performer: Chart of the week

Australian hotels delivered property investors a 9.4% total return over 2012, according to the IPD Asia Pacific Hotel Property Index.

Australian hotel properties outperformed returns generated across the Asian market (5%) and the Asia Pacific (7.7%) over 2012.

The majority of the 9.4% return was the result of capital appreciation (8%) with the remainder (1.4%) coming from income growth.

This was below the three-year return of 13% for the Australian hotel sector but above five-year returns of 7.7%.

The IPD Asia-Pacific Hotel Property Index, which is sponsored by Jones Lang LaSalle and Ryan Lawyers, has a combined asset value of US$12 billion and provides a broad measure of returns for hotel property investment in the Asia Pacific region.