Singapore hotel investment sales surged last year: Savills

Hotel investment sales in Singapore surged last year partly due to the sale of The Westin Singapore, said property consultancy Savills in a report on Monday.

Hotel investment volume last year was $2.45 billion - 4.15 times higher than in 2012.

Japan-based Daisho Group's $468 million purchase of The Westin Singapore from BlackRock in December was the biggest hotel deal last year.

It accounted for the bulk of the $606 million worth of investment transactions in October through December. There was only one other hotel sale that quarter.

For the full year, there were 11 hotel transactions islandwide.

Investment in Asia Pacific hotel properties last year reached its highest level since 2007 at US$8.7 billion, or around $10.9 billion, Savills said. It increased 23.4 per cent from US$7.1 billion in 2012.

Singapore investors accounted for 22.4 per cent of the total last year at nearly US$1.96 billion.

"In Japan, Singapore and Australia, a large number of risk averse investors are still focused on core markets and prime assets," said Savills Research senior director Simon Smith.

Savills expects hotel investment volume to grow to around US$9 billion this year.

Revenue per available room in Singapore only grew in the luxury segment last year, according to figures from the Singapore Tourism Board for January through November last year.

In contrast, the upscale, mid-tier and economy hotel segments saw declining revenue.