Tourist surge leads to record hotel deals

The opening of a vast new entertainment complex, Jewel Changi Airport, which boasts the world's tallest indoor waterfall, as well as the re-opening of the iconic Raffles Hotel and additional business generated by the F1 Singapore Grand Prix helped bo
The opening of a vast new entertainment complex, Jewel Changi Airport, which boasts the world's tallest indoor waterfall, as well as the re-opening of the iconic Raffles Hotel and additional business generated by the F1 Singapore Grand Prix helped boost tourist arrivals in Singapore. PHOTO: AGENCE FRANCE-PRESSE

Hotel deals in Singapore are set for a record amid a surge in tourist arrivals buoyed by people wanting to avoid the protests in Hong Kong.

Hospitality transaction volumes were an unprecedented $5.7 billion as of Nov 30, according to preliminary data from Colliers International, about five times last year's figures and the most in at least a decade.

A record five million visitors came to the island in the third quarter, led by tourists from Greater China, data from the Singapore Tourism Board shows.

That brought arrivals so far this year to 15.8 million.

Mr Govinda Singh, executive director of valuation and consultancy services at Colliers, said Singapore "no doubt" benefited from the protests that have rocked Hong Kong over the past six months.

The opening of a vast new entertainment complex, Jewel Changi Airport, which boasts the world's tallest indoor waterfall, as well as the re-opening of the iconic Raffles Hotel and additional business generated by the F1 Singapore Grand Prix also helped, he said.

A few major Singapore real estate investment trust mergers boosted transactions too, according to Ms Tricia Song, head of research for Singapore at Colliers.

The biggest deal this year was the purchase of Mandarin Orchard for $1.2 billion following the merger of OUE Commercial Reit and OUE Hospitality Trust. The group also bought the Crowne Plaza hotel at Changi Airport for $486 million - this year's third-biggest deal.

Barring an economic crisis, the near-to mid-term outlook for the hospitality market is favourable, said Ms Christine Li, head of research for Singapore and South-east Asia at Cushman & Wakefield.

With some large events and exhibitions making a return and new ones surfacing, 2020 is expected to be another bumper year, Ms Li said.

A slew of new attractions should also help solidify Singapore's position as a South-east Asia tourism hu.

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A version of this article appeared in the print edition of The Straits Times on December 12, 2019, with the headline Tourist surge leads to record hotel deals. Subscribe