A new round of property buyers are eager to cash in on the growing Singaporean hospitality market, with Accor SA and InterContinental Hotels Group PLC both acquiring new properties.
Accor will open its Sofitel So brand in the business district in May and its first Ibis Styles brand in Singapore in 2016, while InterContinental opened its Holiday Inn Express in the city’s nightlife hub of Clarke Quay, Bloomberg Business reported.
Singapore is an attractive destination for hotel investors because the large market of leisure and corporate travellers who go there and the smaller number of properties available there.
“Some of the landmark iconic properties, which are extremely well sought after, aren’t driven just by income, but by long-term capital gains,” CBRE Group Inc.’s executive director Robert McIntosh said.
The Singapore Tourism Board predicts that tourism revenue may climb as much as 5 per cent per year to S$24.6 billion.
According to CBRE, Singapore accounted for 16 percent of a record 143 deals valued at $13.4 billion in the Asia-Pacific region last year.