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Hotels and serviced apartments are increasingly finding favour among corporate investors in Singapore, according to property consultants.

Chesterton Singapore says the segment is compelling, leveraging on the growth in tourism as well as rising interest in hospitality real estate investment trusts.

Mapletree Investments recently signed a deal to buy a 49-per cent stake in Oakwood Asia Pacific, with plans to acquire and develop US$4 billion worth of corporate and serviced apartments in Asia, Europe and North America.oakwood

Analysts say the hospitality segment is attractive to investors who wish to diversify their business.

It also presents upside potential as real estate investment trusts (REITs) continue to be well received in the market.

Donald Han, managing director of Chesterton Singapore, said: “You have City Developments hospitality REIT… Far East Hospitality REIT… Ascendas Hospitality Trust and more might be jumping on to the bandwagon.

“Companies like Mapletree may… be mulling potential listing once their acquisitions have hit a particular matured level.”

Analysts say investors are looking at hotels and serviced apartments as they tend to offer higher yields compared with investments in retail malls or commercial offices.

Consultancy Colliers International says the rate of returns of hotels and serviced apartments is around 5.25 to 5.75 per cent in Singapore.

This is higher than the rate of returns of offices, which is around 3.5 to 4.25 per cent, and retail properties, which is around 4.75 to 5.5 per cent.

However, it is slightly lower than the rate of returns of industrial properties, which is at around 6 to 6.75 per cent.

The consultancy added that total investment transaction value for the hotels and serviced apartments sector in Singapore has increased sharply from S$298 million in 2009 to S$3.7 billion last year.

However, some analysts say rising prices in Singapore’s hospitality market could send investors scouting for opportunities abroad.

“Luxury property like what has been transacted at Westin recently went for about S$1.5 million per key,” said Mr Han.

“Compare that to Australia, where the price per key for a 5-star hotel would hover around S$500,000 to S$550,000 per key (while) in Tokyo, probably around S$400,000 to S$500,000 per key — about more than 50-per cent discount compared to some of the properties in Singapore.”

Tang Wei Leng, executive director of investment services at Colliers International, said: “One hot country right now is Japan. Call it “Abenomics” or the Japan Olympics that they will be hosting in 2020, all this will lead to people wanting to travel to Japan. Where do they have to stay? Serviced apartments and hotels.

“The other one that we think highly of is Seoul. There are two casinos that have been announced.”

Market watchers say the expected growth in international visitor arrivals to Asia Pacific over the next five years will continue to support investments in the hospitality sector.

According to preliminary findings from a recent report by the Pacific Asia Travel Association (PATA), visitor arrivals to the Asia Pacific region will continue to grow at an average annual growth rate of 6.2 per cent from 2014 to 2018, to hit 660 million by 2018.

CNA

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2012 has so far been consistent with previous years’ economic straits. Regular holidaymakers have become quite disillusioned by the lack of affordable foreign accommodation to suit their recently changed means.
Many feel pressure to backpedal on traditional holiday plans as they feel unable to afford extravagant hotel stays anymore. Fortunately this age of thrift, while bringing with it tight pockets, has also seen the rise in demand of affordable digs that equate to quality experienced. This different kind of accommodation is not only much cheaper but often results in a more exciting adventure than initially expected.

The idea of creative solutions for tourists on a budget is not an entirely new one. These have ranged from the uncomfortable, for example couch surfing or camping, to riskier pursuits such makeshift hostels in an overly friendly locals’ spare room!

Some brave travellers found success (by success I mean they lived!) with these gutsy ventures. But for us not so brave holiday-starved folk a safe, affordable and unconventional opportunity has arisen.
It is now possible to find and book a diverse range of luxury and alternative accommodation in cities all over the world through one secure online base. Whether you are looking for contemporary apartments for a short trip to Barcelona, serviced apartments in Bangkok or a charming bed and breakfast in Prague, new website http://www.roomorama.com has made connecting with locals and finding a bargain easier than ever. It also brings peace of mind to nervous holidaymakers, by keeping safe a record of data concerning the transfer of money and other transactions.

Accommodation on http://www.roomorama.com has ranged from hay-stuffed stables to spare bedrooms on boats and even entire apartments, often in well sought after, central locations especially in cities; Wimdu allows you to see all offers in Dublin here.
One Sussex woman advertised her donkey’s usual dwelling to weary travellers seeking the authentic Christmas experience!

More typically, accommodation consists of a spare room in the host’s own home, meaning there are plenty of opportunities to glean an inside perspective on the real town and learn about the must-do activities that never make it into mainstream tourist guides.
So if you need to tighten your purse strings but also want to have a memorable adventure it is now possible to find this in one up to date database.