Singapore mid-market hotel demand recovery to continue in 2H2022

SINGAPORE (EDGEPROP) - Singapore’s mid-market hotel segment is expected to continue its path towards recovery in the second half of this year and should post a healthy post-pandemic growth performance on the back of increased tourist demand and heightened investment interest, based on a market report by JLL.

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The outlook report for this segment of the local hotel market forecasts that occupancy and investment into the sector will continue to recover in 2H2022 despite broader economic challenges. This includes staffing shortfalls and inflation-driven supply issues, as well as industry specific requirements such as digital upgrades to properties.

Looking ahead, the mid-market hotel segment could see a rebound in investment volumes, ending the year at $400 million. In 1Q2022, mid-market hotel transactions totalled $103 million which was the entire half-year volume recorded in 2021.

“Singapore’s mid-market hotel segment is firmly on investors’ radars as they take a longer-term view on changing consumption habits and new conversion opportunities available to operators. The pandemic highlighted the sector’s role in accommodating longer-term stays, and we see a broader push from the mid-market space to transform properties into co-living spaces,” says Noel Neo, head of Singapore mid-markets, JLL hotels and hospitality group.

Recent examples of co-living conversion include the launch of LHN Group and Four Star joint venture, and the partnership between SLB Development and Weave Living to convert Hotel Clover.

“By taking a partnership approach with asset management providers, many mid-market operators can better future proof their assets and attract more guests and capital,” says Pierre Marechal, vice president, advisory & asset management, Asia Pacific, at JLL Hotels and Hospitality Group.