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Overall hotel investments in Singapore last year reached $518.7 million, the highest in three years since 2015, reported Singapore Business Review, citing a report from CBRE.
Of the eight hotel transactions in 2018, most involved small mid-tier and economy properties, as well as boutique hotels in shophouses like the 29-unit Wanderlust Hotel, the 41-key Wangz Hotel and the 84-room Porcelain Hotel.
“The momentum continued in 2019 with major deals currently in the midst of the transaction process, namely Ascott Raffles Place as well as the two Oxley-owned hotels, Novotel on Stevens and Mercure on Stevens at $353.3 million and $950 million, respectively,” said the report.
Property consultancy CBRE noted that hotel investments in the city-state gained momentum as investors shunned the softening private residential market amidst new government curbs.
“With URA’s revised guidelines and introduction of cooling measures in the residential market in July 2018, diversification into hotel assets has been gaining traction from real estate market players.”
On the other hand, the local hospitality market has been propelled by robust visitor numbers, which reached 18.5 million last year. Furthermore, CBRE noted that several hotels have been put up for sale in the past few months. These include a 25-room freehold boutique hotel in Little India, the 241-unit Ibis Novena and the 343-key Andaz Singapore (pictured).
Looking ahead, several hotels with a total of about 2,000 rooms are forecasted to be completed this year, including the EDITION and YOTELAIR Changi Airport. Far East is also expected to open the Village Hotel and The Outpost Hotel by Q1 2019, as well as The Barracks Hotel by Q3 2019. All three are located on Sentosa Island.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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