Singapore Expects to Recover 80% of Pre-Covid Visitors
Skift Take
- Singapore’s Minister of State for Trade and Industry, and Culture, Community and Youth said Singapore’s visitor tally this year should be on the higher end of their 4 million to 6 million projection from July.
- According to September 2022 data from STR, Middle East & Africa was the only world region to show an increase in overall hotel pipeline activity at the end of the third quarter.
- JLL Hotels & Hospitality Group’s Hotel Investment Highlights Asia Pacific 2H22 said a combination of pent-up demand, a resurgence of cross-border transactions, and a buoyant travel industry will lift Asia Pacific hotel investment to over US$10.7 billion in 2022.
Singapore’s Minister of State for Trade and Industry, and Culture, Community and Youth said Singapore’s visitor tally this year should be on the higher end of their 4 million to 6 million projection from July. They also expect their tourism receipts for 2022 to be between S$10 billion and S$20 billion. The figures are about 40% of pre-pandemic numbers in 2019. By the end of the year, Singapore expects flights in Changi Airport to recover to about 80% of 2019, impressive considering the absence of the Chinese.
According to September 2022 data from STR, Middle East & Africa was the only world region to show an increase in overall hotel pipeline activity at the end of the third quarter. In Europe, Germany (38,676) and the U.K. (29,471) lead Europe in total rooms in construction. Among the countries in Asia-Pacific, China has the most rooms in construction (311,859), followed distantly by Vietnam (28,692). Most of the Middle East & Afirca’s pipeline activity is focused in the Middle East. Saudi Arabia (39,070) and UAE (32,272) lead in construction activity. The U.S. holds the majority of rooms in construction in the region, followed by Mexico (14,077) and Canada (7,126).
End of Q3 2022 Room Pipeline
Region | In Construction | Final Planning | Planning | Total Under Contract |
---|---|---|---|---|
Europe | 197,884 (-14.1%) | 144,277 (-16.1%) | 162,896 (+9.7%) | 505,057 (-8.3%) |
Asia-Pacific | 485,250 (-1.5%) | 131,427 (-26.3%) | 287,572 (-0.2%) | 904,249 (-4.3%) |
Middle East & Africa | 130,956 (-3.2%) | 38,147 (-5.9%) | 74,510 (+18.9%) | 243,613 (+2.2%) |
Americas | 207,585 (-9.2%) | 203,069 (-17.9%) | 329,789 (+9.4%) | 740,443 (-4.8%) |
JLL Hotels & Hospitality Group’s Hotel Investment Highlights Asia Pacific 2H22 said a combination of pent-up demand, a resurgence of cross-border transactions, and a buoyant travel industry will lift Asia Pacific hotel investment to over US$10.7 billion in 2022. Investment volumes are projected to increase by 14% year on year as normalcy returned to the market with the resumption of broad leisure and business travel in the region. In the first nine months of 2022, hotel transactions in Asia Pacific totaled US$8.4 billion, a 16% increase year on year. Japan reclaimed their position as the region’s most active travel market, logging US$2.3 billion in transactions for the first nine months of the year. South Korea reached a new historic peak, with year to date transactions of US$1.8 billion, setting a new benchmark Investment activity also remained strong in China at US$1.2 billion and Australia came in at US$696 million. Over the nine month period, the average price per key rose to US$445,000 from $331,000 a year earlier. A total of 123 hotel deals were transacted in 2022 year to date versus 139 year on year in 2021. JLL said there is some pressure on the industry as institutional capital is outstripping the supply of hotels available for acquisition in Asia Pacific’s markets. 73% of investors are interested in deploying capital in the hotel sector in the next 12 months. Despite the pandemic, the alternative accommodation sector has proven to be resilient and the blurring of real estate sectors is accelerating the growth of alternative accommodations across all regions. JLL believes the increase in interest rate and rising cost of debt will benefit cash-rich buyers with high net worth individuals and family offices playing a more active role in the hotels market for the rest of the year and into 2023. JLL expects 2023 investment volumes will likely grow by around 6% to finish 2023 at US$11.5 billion.
Hyatt Hotels Corporation announced the opening of Hyatt Regency Hainan Ocean Paradise Resort. The hotel is the centerpiece of the new Hainan R&F Ocean Paradise, which is a large scale, integrated resort that consists of Hainan R&F Ocean Paradise Resort, R&F Water Park and various marine-themed hotels. The property is a one hour drive from the Sanya Phoenix International Airport. The hotel’s 1,000 guestrooms, includes 29 suites with the option of connecting twin-bed rooms, 108 Family Rooms, all offering a private balcony with views of the ocean, Ocean Paradise Resort, mountain or garden. Guests staying in Regency Club rooms can enjoy access to the Regency Club and terrace on the third floor. The resort includes three unique waterfront restaurants and lounges. The resort includes three ocean view swimming pools and 43,000 square feet of meeting and event space.
Mandarin Oriental Hotel Group announced it will manage a new hotel in Tianfu, a modern Business District south of Chengdu, the capital city of Szechuan province. Tianfu New Area is expected to become the future commercial center of Southwest China. Mandarin Oriental, Tianfu, Chengdu is due to open in 2028. The hotel will comprise 267 guestrooms and suites as well as a club lounge. Four restaurants and bars will provide a variety of cuisines, which significant meeting and event space will ensure the hotel is well positioned for business and social gatherings. A Mandarin Oriental signature spa and well equipped fitness center with indoor swimming pool will round out the amenities. Mandarin Oriental is partnering with the developer, China Overseas Land & Investment.
Accor said the Pullman Lombok Mandalika Beach Resort is now open. The Indonesian 257 room resort features a modern approach to beachfront hospitality, only a 20 minute drive from Lombok International Airport. This is the first five star resort built in Mandalika, one of Indonesia’s Super Priority Tourism Destinations. The 257 well-appointed rooms, spacious suites and villas include a private balcony in each room with the choice of garden views or Indian Ocean views. The Junction is an open-air Pullman lobby that is immersed in local art. The resort features four dining venues, fitness lounge, Pullman Spa and event and meeting space.
Artotel Group, in collaboration with PT Selat Niagatama, inaugurated the opening of the newest hotel in South Jakarta, namely Artotel Casa Kuningan on October 20, 2022. Artotel Casa is one of the Artotel brands for boutique hotels with a Service Residence concept that prioritizes “personal service” and an environmental atmosphere like being at home. The brand is specifically aimed at business travelers with longer stay periods. This Artotel Casa Kuningan has 46 rooms, consisting of Studio 25 with an area of 25 square meters and Studio 28 with an area of 28 square meters. The hotel includes a restaurant, a swimming pool and a rooftop bar a la Artotel, BART, along with a gym.
The Taj Wayanad Resort and Spa opened on October 22. Indian Hotels Company said it was opening on October 28. The five star project in Kerala in India was built for Rs 120 crore, built in the isle that projects into the Bansura Sagar dam at Manjoora in Thariode. The buildings are built in an eco-friendly way, facing the clear waters of the Banasura Dam. The 10 acres include rooms, cottages and villas. Besides 61 rooms, there are 4 pool villas, 42 water frontage cottages, a rooftop bar and spacious garden areas. The Presidential Villa is 864 square feet. There are three restaurants, a yoga pavilion, Amphi theater and a Jeeva Spa.
Callie Malouf Investments, which developed The Calile Hotel in James Street, Brisbane, has lodged plans for an integrated resort, featuring 178 rooms, 12 suites and 15 villas. The hotel will be at a prime location on the Sunshine Coast, a 2.4ha site at 2-7 Serenity Close at Noosa Heads. The large site allows for multiple swimming pools, tennis court, comprehensive wellness facilities, cinema and function spaces. All hotel rooms will be generously sized with the standard room being 45 square meters and a range of larger suites. The three bedroom villas, complete with a private pool, will cater to families or groups of friends.
JLL Hotels announced the sale of the freehold going concern of the Stradbroke Island Beach Hotel in Queensland, Australia on behalf of developer and investor Bob Hill. The hotel is positioned on a large, 3,267 square meter lot. It comprises a main bar, bistro, beer garden, gaming room with 15 EGMs, function room, drive through and one detached bottle shop. 15 hotel rooms as well as caretaking and letting rights for the luxury apartment complex, are sitting adjacent to the hotel. The buyer is emerging boutique hospitality group, The Good Time Group Holdings with Anthony Moreton Group who have forged a strategic partnership. The partnership is developing a growth plan around multiple key acquisitions of unique hotels in areas the group will develop into models showcasing their premium signature boutique design and hospitality offerings. The group plans a $5 million investment into a full venue renovation in due course.
India’s Competition Commission of India has fined Oyo Rooms about $20 million for anti-competitive behavior. They also fined MakeMyTrip Ltd for about $27 million for the same thing. The fines are over allegations MakeMyTrip gave special treatment to OYO on its platform. The ruling requires the OTAs modify agreements with hotels to remove the price and room availability parity obligations with respect to other online travel portals.