This year, they’re anticipated to yield 3.5%-4.5%.
The hotels in Singapore are hoped to yield between 3.5%-4.5% in 2018, somewhat within the lower ranges for the Asia Pacific region, as explained by Savills Singapore.
As per their forecast, hotels in Hong Kong have the lowest anticipated yield of 2.5%-3.5%, in comparison to Melbourne’s 5%-6%.
In general, the yield levels of prime location may be seen potential downward adjustments, at the same time as investor confidence develops in secondary markets.
Hotel assets in Singapore carry on to be tightly held, in spite of powerful interest from international investors. Considering the current trends, the pricing gap between the buyers and sellers should be gradually tapering and the market will eventually witness some major deal flow.
To quote Savills Research senior director Simon Smith, “Regional players may consider taking on more opportunistic deals in their respective markets to meet higher yield expectations.”
Tags: Singapore hotels
