While serving our group of clients who is looking to purchase a hotel in Singapore, we were awed that the hotel industry has recorded ‘stellar’ performance last year 2013.
With upcoming development of terminal 4, Singapore is expecting to handle up to 82 million of passengers movement in 2017, this spells an increase in demand for hotel accommodation in Singapore in the upcoming years. Furthermore, statistics from Singapore Tourism Board shows a steady climb in the number of tourist arrivals.
On the back of this growing tourism industry, the hotel industry has enjoyed stellar performance in 2013. In last quarter of 2013, the hotel site at Havelock Road launched for sale under Government Land Sale programmes has saw strong interest, drawing a 9 party tender with a top bid of $30.1 million from I Hotel.
At the close of the year 2013, the hotel industry also 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, translating to around $1.5 million per room, breaking the previous record of $1.4 to $1.5 million per room set by Bright Ruby Resource’s purchase of Grand Park Orchard Hotel in 3rd Quarter 2013.
Here’s the 12 major hotels deal in 2013:
Hotel Price Price Per Room
Mandarin Orchard Singapore 1,190,000,000 1,132,255
Grand Park Orchard Hotel 1,160,000,000 1,400,000 to 1,500,000
Westin Hotel 468,000,000 1,534,000
Park Hotel Clarke Quay 300,000,000 892,857
Rendezvous Grand Hotel 264,300,000 886,913
Park Regis Singapore 250,000,000 818,000
Gallery Hotel 232,500,500 1,000,000
The Sentosa Resort & Spa 201,850,000 1,000,000
Ibis Singapore Novena 155,000,000 622,000
UE Bizhub East (Hotel Component) 138,000,000 549,801
Berjaya Hotel 50,000,000 1,020,000
Hotel 1929 35,000,000 1,093,750
Interested to buy or sell your hotel? Kindly contact our team for a non-obligatory discussion.