Singapore’s mid-market hotel sector will continue to post healthy post-pandemic growth performance, fueled by increased tourist demand and reflected by heightened investment. This was revealed in JLL’s Singapore mid-market hotels outlook 2022.
According to the new report, occupancy and investment in the sector will continue to recover in the second half of the year despite broader economic challenges, including staffing shortfalls, inflationary-driven supply issues, and more industry-specific requirements such as digital upgrades to properties. Over the past 18 months, the stable performance of Singapore’s mid-market hotel segment has been linked to various drivers, including demand for staycations and soaring demand for longer-term temporary accommodation.
JLL data and analysis suggest that the resiliency of the mid-market sector will be further reflected in a solid rebound in investment volumes in 2022, forecast to end of the year at SGD400 million (USD288 million). In the first quarter of 2022 alone, mid-market hotel transactions totalled SGD103 million (USD74 million), representing the entire half-year volume of 2021 in three months.
“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,” said JLL Hotels & Hospitality Group head of Singapore mid-markets, Noel Neo.
The trend of co-living conversion has been highlighted by the launch of LHN Group Four Star’s joint venture under the Coliwoo brand and the more recent partnership between SLB Development Ltd and Weave Living to convert the Hotel Clover in Jalan Sultan into a co-living property.
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