Your Winning Move: Singapore Hotels

Colliers REview Singapore blog - Investing in hotels across Asia: Singapore the winning move

The Lion City's tourism sector has a strong track record of weathering and emerging stronger from past crises.


A strong tourism rebound is forecast for Singapore, re-energising the appetite for hotels. Recently, the hospitality sector was unveiled as the third most resilient sector and likely to rebound post pandemic in Colliers’ Resilience and Rebound Ranking report.

This bodes well for investors, with international arrivals set to rise and returns for hotels continuing to trump other commercial asset classes.

Let’s look at why Singapore is your winning move when it comes to investing in hotels in Asia.

 

The Returns Card:
  • Hotel yields in Singapore are comparatively higher than the average across the region, in relation to other commercial real estate classes.

  • Due to land scarcity and use in central Singapore, hotel yields are expected to stay firm.

  • The majority of quality hotel assets in Singapore remain tightly held, while investment demand for hotel assets continues to be strong from institutional investors regionally.

  • In light of lower yields for most of the traditional asset class, hotels are an attractive investment as it remains a relatively safe haven.

 

The Tourism Card:
  • Singapore's tourism sector is resilient, as demonstrated by its strong track record of weathering and emerging stronger from past crises.

  • A rebound over a 12 to 18 month period in tourist arrivals post-crisis is expected, with the tourism sector's fundamental growth sectors remaining largely intact.

  • New attractions and infrastructure projects planned for 2021 to 2030 bode well for future visitation.

  • A relatively low level of room supply per capita supports hotel fundamentals over the medium term. 

 

Colliers REview Singapore blog - Investing in hotels across Asia: Singapore the winning move infographic

Why Singapore is your winning move when investing in hotels across Asia (click to enlarge)

 

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Govinda Singh

Executive Director

Singapore

Govinda, a member of RICS and registered valuer, is a chartered certified accountant with a postgraduate diploma in economics and a certificate in business valuations, who began his career at Pricewaterhouse in audit and tax advisory.

Having worked as an Operations Manager for Hilton, he was the Financial Controller at the luxury Lanesborough Hotel, at which time he worked closely with the Rosewood and Starwood hotel groups at both the local and corporate level.

Govinda joined PKF in London in 2005 where he was a Managing Consultant within the Hotels and Leisure Valuation and Consulting  practice. He subsequently joined BDO’s Real Estate Valuation and Consulting  team in 2012, where he was a Director responsible for the EMEA, Caribbean and Asia-Pac regions.

Govinda joined Cushman & Wakefield Singapore in 2015 where he was a Director within the Asia-Pac Valuation and Advisory team.

He is now an Executive Director at Colliers International advising on, and valuing investments involving mixed-use, specialist and alternative asset classes across Asia and further afield.

He is also one of Colliers’ dedicated specialist portfolio advisors and valuers in the region, and globally.

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