Singapore has ascended its recovery by reopening its borders, making it a safe haven for investors wanting to buy hotel properties in the area across all segments. More precisely, the mid-market is gaining popularity, with investors showing more interest than in the previous decade.
The mid-market hotel sector will continue to grow strongly post pandemic, powered by rising tourist demand and reflected in greater investment. According to JLL's Singapore mid-market hotels outlook 2022, despite broader economic challenges such as staffing shortages and inflationary-driven supply issues, as well as more industry-specific requirements such as digital upgrades to properties, occupancy and investment in the sector will continue to recover in the second half of the year.
"As investors take a longer-term perspective of changing consumption trends and new conversion prospects accessible to operators, Singapore's mid-market hotel segment is firmly on their radars." The pandemic emphasized the sector's role in supporting longer-term stays, and we're seeing a broader push from the mid-market area to convert properties into co-living spaces," says Noel Neo, JLL Hotels & Hospitality Group's Head of Singapore Mid-Markets.