Singapore was the second most active market in Asia-Pacific for hotel transactions after Australia in the third quarter, according to a report by Savills.
The Republic recorded US$742 million of hotel deals helped by the sale of Grand Park Orchard, Gallery Hotel, The Sentosa Resort & Spa, and Hotel 1929.
Singapore had a 26.7 per cent share of the US$2.77 billion of hotel investment sales deals across Asia-Pacific in the July-September quarter of 2013.
Australia, with US$1.07 billion, had the lion's share of 38.5 per cent. Japan and China were in third and fourth placing, at 17.9 per cent and 13.2 per cent share respectively.
The biggest Singapore hotel transaction in Q3 was that of the Grand Park Orchard, which was listed at about US$364.25 million. Savills said this approximate sale price referred to the transaction value for only the hotel component as calculated by US-based Real Capital Analytics (RCA); it excluded the retail podium Knightsbridge.
The combined asset comprising the 308-room Grand Park Orchard Hotel and Knightsbridge changed hands for S$1.16 billion, according to an earlier BT report. The buyer is Bright Ruby Resources, a Singapore- incorporated vehicle controlled by a Du family in China.
Noting that the average transaction price for the most recent Singapore hotel deals has exceeded S$1 million per room, Savills highlighted that this is against a mix of a weaker events-calendar, slower corporate demand and price competition from newly opened hotels which has reduced hotel trading performance this year.