Archive for category: Misc

to 3Q2023: CBRE
Hotel investment activity in the Asia Pacific (APAC) region decreased significantly in the first half of 2023, according to a research report by JLL. The figure of US$3.13 billion was a drop of 51% compared to the same period in 2022 with US$6.41 billion.

Singapore’s hotel transaction volumes declined to US$30 million in 1H2023, a 95% y-o-y plunge. To counter this, the sale of Parkroyal on Kitchener Road for US$388 million was announced by UOL earlier this month. Midtown Properties, a unit of the Worldwide Hotels Group, were the purchasers of the hotel located in Little India. JLL advised on the sale.

China showed a 76% y-o-y decrease to US$300 million, whereas Japan saw an increase in volume, growing 56% from the same period in 2022 to US$1.54 billion. Australia and New Zealand also saw a growth in hotel investments to US$820 million, a 189% increase.

Commenting on the report, Nihat Ercan, CEO of Asia Pacific at JLL Hotels & Hospitality Group said: “We have observed the impact of a continued disconnect between the robust tourism demand and macroeconomic and geopolitical challenges in the first half of 2023, resulting in a gap between sellers’ pricing expectations and buyers’ access to capital.” Due to these headwinds, JLL revised its full-year 2023 forecast for APAC hotel investments to US$8.7 billion, a 24% decrease from its initial prediction.

In spite of the downturn, the hotel industry has seen ”considerable improvement” in trading performance. This has been supported by rising average daily rates across the region and the reopening of China in January. JLL anticipates more specific opportunities to emerge in selected destination in 2024.

In addition, it is just a short drive away from the shopping malls at Jurong East and Tampines, and the Bukit Batok Nature Park.

The Tengah Plantation Loop EC offers a host of first-rate recreational and lifestyle amenities, including an in-house gym, tennis courts, an outdoor pool and playground, as well as a jogging track. Its communal spaces are also designed in a lush landscaping and come complete with water features and trellised pathways. In addition, the residents here can enjoy a wide-range of shopping, dining and entertainment choices at the nearby Tengah Town Centre. Therefore, the Tengah Plantation Loop EC is an ideal place for families seeking a tranquil living environment not far from the hustle and bustle of the city.

JLL has recently advised on some notable hotel transactions. In July, Crystal Plaza Resorts were advised on the sale of Amari Havodda Maldives resort to Thai hospitality conglomerate Minor International Public and its financial partner, Abu Dhabi Fund Development. In June, JLL announced the completion of Southeast Asia’s first hotel portfolio sale for 2023; Pullman Jakarta Central Park, ibis Saigon South and Capri by Fraser, for a combined US$106.1 million.