Singapore’s hospitality sector is thriving, offering resilient and flexible investment opportunities for those seeking stability and growth. Hotels and serviced apartments are uniquely positioned, offering irreplaceable physical experiences that cannot be easily substituted, even as digital lifestyles evolve. They are especially adaptable, with the ability to adjust room rates swiftly to match market demand, ensuring revenue optimization across market cycles.
In 2024, Revenue per available room (RevPAR) in Singapore saw a notable 2.8% increase in 2024, reflecting a steady rebound in occupancy rates as international travel normalizes. Higher tourist arrivals, fueled by the return of Chinese travelers and a busy calendar of major events, are driving this recovery. At the core of this resurgence lies the luxury hotel segment, which has demonstrated significant pricing power. Average room rates in this segment climbed by a remarkable 8.7% year-on-year in 2024, underscoring robust demand from high-spending travelers.
For investors, Singapore offers a beacon of opportunity. A steady demand base combined with a constrained supply pipeline makes the city-state’s hospitality market especially appealing. Meanwhile, the post-pandemic upswing in hotel rates and the rising popularity of co-living concepts have opened doors to value-adding strategies, including asset enhancements, and repositioning for alternative uses such as blending short- and long-term stays to cater to a younger, experience-driven demographic.
Recent transactions led by our team underscore this growing appetite for hospitality and co-living assets. The sales of Citadines Mount Sophia and Capri by Fraser Changi City highlight the demand for strategically located properties. Similarly, the conversions of Stamford Court and Serene Centre into co-living spaces demonstrated strong demand from institutional investors for such value-added investments. With its strong market fundamentals, limited supply, and adaptability to evolving lifestyle trends, Singapore is well-positioned to sustain this growth trajectory into 2025.
