Hotel industry recorded ‘stellar’ performance last year.
According to Knight Frank, the total number of international tourist arrivals for the first 10 months of 2013 was 12.9 million, 8.4 per cent higher than the same period in 2012. This is largely driven by the burgeoning middle class population in Asia and the government’s effort in reinventing Singapore as a MICE destination.
On the back of this growing tourism industry, the hotel industry has enjoyed stellar performance in 2013. In 4Q 2013, the hotel site at Havelock Road, which was launched for sale under the 2H 2013 GLS programme saw strong interest. The plot drew a nine-party tender and the top bid of $30.1 million came from I Hotel.
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This translates to a steep land price of $1,303 per sq ft per plot ratio, surpassing the previous record set by the sale of the mixed commercial and residential site at Yishun Avenue 2/ Yishun Central 1 in 3Q 2013.
Just before the year wound to a close, the hotel industry saw a record-breaking transaction. The Westin Singapore hotel was sold by Blackrock‘s Asia Property Fund III, a fund managed by private equity MGPA, to Japan-based property developer and investor Daisho group for $468 million.
Featuring 305 guest rooms, the purchase price translates to slightly above $1.5 million per room, breaking the previous record of $1.4 – $1.5 million per room set by Bright Ruby Resource’s purchase of Grand Park Orchard Hotel in 3Q 2013.
The record price on a per room basis as well as the record land bid for the plum hotel site reinstated the bullish sentiment on the hotel sector and the investors’ preference towards prime good quality assets.
Check out Singapore"s 12 major hotel deals in 2013
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