, Singapore
116 views

Singapore's expected hotel yields amongst the lowest in Asia

They're expected to yield 3.5%-4.5% in 2018.

Singapore's hotels are expected to have yields between 3.5%-4.5% in 2018, slightly within the lower ranges for the Asia Pacific region, Savills Singapore said.

According to their forecast, Hong Kong hotels have the lowest expected yield of 2.5%-3.5%, compared to Melbourne's 5%-6%.

Overall prime location yield levels may see potential downward adjustments, whilst investor confidence improves in secondary markets.

Hotel assets in Singapore continue to be very tightly held, despite strong interest from foreign investors. Given current trends, the pricing gap between buyers and sellers should be narrowing and the market will finally start to see some significant deal flow.

Savills Research senior director Simon Smith commented, "Regional players may consider taking on more opportunistic deals in their respective markets to meet higher yield expectations."

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.