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20
Jun

Sleeping on Singapore: Why the Smartest Hospitality Capital Is Heading to the Lion City

Last Updated
I
June 20, 2025

Most investors are sleeping on Singapore's hospitality boom - and that's a $2.3B mistake.

While everyone's chasing "emerging markets," they're missing one of Asia's most compelling investment stories happening right under their noses.

Here's what our quantamental analysis reveals about Singapore's hospitality sector:

🔸 Visitor arrivals: 90% of pre-pandemic levels (faster recovery than most predicted)
🔸 Tourism receipts per capita: +20% vs. 2019 (pricing power intact)
🔸 Chinese market: Only 87% recovered (massive upside potential)
🔸 Land size: 735 sq km (scarcity creates premium valuations)

But here's the kicker that most investors miss:

Singapore isn't just recovering - it's evolving into something more valuable.

The government's strategic push for year-round events and business tourism has created what I call "demand density" - consistent occupancy across all seasons, not just peak periods.

At Bay Street Hospitality, we've been tracking this trend across our $430M portfolio, and the data is compelling:

→ Singapore hotels: 23% higher RevPAR stability vs. regional peers
→ Business travel segment: 31% faster recovery than leisure
→ Event-driven demand: 40% less seasonal volatility

The mistake most investors make? They see Singapore as "expensive" without understanding the risk-adjusted returns.

Yes, cap rates are lower than Jakarta or Manila. But when you factor in:
* Political stability (zero country risk)
* Currency strength (SGD appreciation)
* Operational efficiency (English-speaking, skilled workforce)
* Strategic location (regional business hub)

The risk-adjusted returns tell a different story.

CBRE ranks Singapore as a top-3 preferred investment destination in Asia. That's not hype - that's institutional capital recognizing value.

My prediction: By 2027, Singapore hospitality assets will outperform most "high-growth" emerging markets on a risk-adjusted basis.

The question isn't whether Singapore is expensive. It's whether you can afford to miss this opportunity.

What's your take on Singapore vs. other Asian hospitality markets?

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