A record-breaking transaction volume, which is reportedly the highest in the past decade
Hotel transactions in Singapore amassed USD5.7 billion as of November, at least five times more than a year before and the highest in the past decade, reported The Straits Times, citing data from Colliers International.
Moreover, the Singapore Tourism Board revealed that the city-state welcomed an all-time high of five million visitors in the third quarter, with Mainland Chinese tourists leading the pack. With such numbers, the arrivals for the entire year accumulated to about 15.8 million.
According to Govinda Singh, executive director of valuation and consultancy services at Colliers, Singapore was able to profit from the political unrest that still plagues Hong Kong.
He said that the launch of Jewel Changi Airport, a new entertainment complex that is home to the world’s tallest indoor waterfall; the re-opening of Raffles Hotel, an iconic colonial-style luxury property; and the business opportunities introduced by the F1 Singapore Grand Prix helped with the growth of the tourism industry.
Tricia Song, head of research for Singapore at Colliers, said that the real estate investment trust mergers propelled the transaction volumes further.
The biggest deal of the year was for Mandarin Orchard worth USD1.2 billion, following the merging of OUE Hospitality Trust and OUE Commercial Reit, who are also responsible for the year’s third-biggest investment of USD486 million for the Crowne Plaza hotel at Changi Airport.
Christine Li, head of research for Singapore and Southeast Asia at Cushman & Wakefield, said that despite the economic situation of the city-state, the hospitality sector is looking quite favourable for the near- to mid-term outlook.
She also said that the upcoming exhibitions and events in 2020 will serve as another bumper year for Singapore.
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