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Apac Investors Signal Intent Buy More Hotel Assets 2025 Cbre

Posted on February 24, 2025

Singapore has cemented its position as a highly sought-after location for real estate investment, attracting a diverse range of both local and international investors. Thanks to its robust economy, stable political landscape, and exceptional quality of life, the country has become a prime choice for those interested in purchasing a condo. With a wide array of opportunities in the real estate market, condos have emerged as a popular option due to their convenience, amenities, and potential for lucrative returns. In this article, we will explore the benefits, considerations, and necessary steps involved in investing in a condo in Singapore, with a special focus on projects currently available in the country. To learn more about specific projects in Singapore, check out Singapore Projects.

There is an anticipated continuation of robust investment activity in the Asia Pacific (Apac) hotel sector in 2025, according to a recent survey conducted by CBRE. The survey, titled the 2025 Asia Pacific Hotel Investor Intentions Survey, found that over 72% of hotel investors surveyed in November and December of last year plan to increase their purchasing of hotel assets in 2025. Additionally, 45% of respondents stated they are looking to increase their purchasing volume by more than 10% this year.

Steve Carroll, head of hotels, capital markets, Asia Pacific at CBRE, notes that after a strong performance over the past 18 months, investors are expecting Apac hotel and living assets to have the most optimistic pricing expectations in 2025. This positive outlook is fueled by a rebound in tourist arrivals, particularly in key markets such as Japan, Singapore, and Australia, which has led to an increase in room rates and income growth for hotel operators.

The survey also found that investors are encouraged by the limited hotel supply in the Apac region. According to data from hospitality data intelligence group STR, the hotel supply pipeline in Apac is set to grow at a CAGR of 2.2% between 2024 and 2028, significantly lower than the 5% CAGR seen between 2013 and 2023.

REITs were found to have the highest net buying intentions, at 22%, marking a significant improvement from the -13% recorded in last year’s survey. This suggests a shift in mindset, with REITs now planning to invest in hotel assets after several years of negative investment intentions.

Institutional investors and property funds were the next most active buyer types, with net buying intentions at 12% and 10% respectively. CBRE notes that private equity and real estate funds for hotels became more active in 2024 and are expected to continue this trend in 2025.

However, the survey also revealed that private investors and high-net-worth individuals are expected to drive fewer hotel acquisitions this year. This is due to a greater level of selling activity, as these investors look to capitalize on improved market sentiment after acquiring assets during a period of price dislocation in the previous years.

According to the survey, upscale and upper midscale hotel assets are favored by respondents for investment opportunities in 2025, overtaking the upper upscale category which was the top choice in last year’s survey. This could be due to the operational flexibility and value-added opportunities offered by these assets, including redevelopment, adaptive reuse, and rebranding of existing properties. Additionally, these assets often have a leaner labor pool, which can help reduce operating costs.

Investors are also turning to long-stay or hybrid hospitality models, such as converting assets into co-living spaces, which are gaining traction in markets like Japan, Hong Kong, and Singapore where there is demand for cost-effective accommodation in inflexible rental markets.

Other emerging trends noted in the survey include a preference for assets with vacant possession at the time of acquisition, allowing for flexibility in terms of operator selection and refurbishment works. There is also increased interest in limited-service hotels, as investors focus on minimizing operational costs.

The top five cities preferred by hotel investors in the survey included Tokyo, Osaka, Singapore, Sydney, and Seoul. Low interest rates and stable income streams from hotel properties were cited as the main reasons for Tokyo and Osaka’s popularity. Singapore and Sydney were also favored due to solid hotel fundamentals, including growth in daily rates and operating profits. Seoul saw an uptick in investor activity, driven by an increase in visitors from mainland China and resulting increases in daily rates.

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