Hotel transaction volumes in Singapore soared 415.6%

Here are its two biggest sales.

According to Savills, investment sales in Singapore and Japan increased, with transaction volumes surging 415.6% and 34.9% respectively year-on-year (YoY).

Singapore witnessed S$606 million (US$483.41 million) worth of investment transactions in Q4/2013, with two hotel sales, bringing the total for 2013 to 11 hotels and an investment volume of S$2.45 billion (US$1.96 billion), 4.15 times higher than the total volume for 2012.

In the largest deal of 2013, The Westin Singapore, located in Asia Square Tower 2 at Marina Bay, was sold to Japan-based Daisho Group from BlackRock for a total of approximately S$468 million (US$372.88 million) or S$1.5 million (US$1.22 million) per key, just over a month after its official opening.

There is a certain premium attached to The Westin Singapore given its location and strong pool of office tenants, the ongoing planning of the Marina Bay area mixed-use district, and its prestige branding from Starwood Hotel Group.

According to the latest statistics from the Singapore Tourism Board, year-to- date November revenue per available room (RevPAR) only increased in the luxury segment by 9.74%, while the upscale, mid-tier and economy segments declined by 10.57%, 3.08% and 8.64% respectively.