The latest survey by CBRE reveals that Singapore remains one of the top five hotel investment destinations in the Asia Pacific (APAC) region, alongside Tokyo, Sydney, Seoul, and Bangkok. The 2025 Asia Pacific Hotel Investor Intentions Survey highlights a significant shift in investor sentiment, with 72% of respondents planning to increase their hotel asset allocations this year. This trend underscores the resilience of the hospitality sector as a robust asset class.
Singapore’s enduring appeal as an investment hub is attributed to its resilience despite growing regional competition. However, faster year-on-year tourism rebounds in countries like Japan, Korea, and India may divert some investor focus. Steve Carroll, Head of Hotels, Capital Markets, Asia Pacific at CBRE, noted, “After performing strongly over the past 18 months, investors anticipate hotel and living assets in Asia Pacific to have the most optimistic pricing expectations in 2025.”
Key trends reshaping the hotel investment landscape include a pivot towards upscale and midscale hotels over luxury options, driven by value-add opportunities and rising development costs. Investors are increasingly favouring adaptive reuse, redevelopment, and rebranding over new builds due to high development costs. Additionally, hybrid hospitality models, such as long-stay and co-living hotels, are gaining traction, reflecting evolving consumer travel behaviours.
As these trends continue to influence investor sentiment, Singapore’s position as a leading hotel investment hub in APAC is expected to remain strong, with potential implications for future market dynamics.
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