SINGAPORE, 19 May 2022: Singapore’s mid-market hotel sector will continue to post healthy post-pandemic growth performance, fueled by increased tourist demand and reflected by heightened investment.

According to JLL’s Singapore mid-market hotels outlook 2022, occupancy and investment in the sector will continue to recover in the second half of the year despite broader economic challenges, including staffing shortfalls, inflationary-driven supply issues, and more industry-specific requirements such as digital upgrades to properties.

Over the past 18 months, the stable performance of Singapore’s mid-market hotel segment has been linked to various drivers, including demand for staycations and soaring demand for longer-term temporary accommodation.

JLL data and analysis suggest that the resiliency of the mid-market sector will be further reflected in a solid rebound in investment volumes in 2022, forecast to end of the year at SGD400 million (USD288 million). In the first quarter of 2022 alone, mid-market hotel transactions totalled SGD103 million (USD74 million), representing the entire half-year volume of 2021 in three months.

“Singapore’s mid-market hotel segment is firmly on investors’ radars as they take a longer-term view on changing consumption habits and new conversion opportunities available to operators. The pandemic highlighted the sector’s role in accommodating longer-term stays, and we see a broader push from the mid-market space to transform properties into co-living spaces,” said JLL Hotels & Hospitality Group head of Singapore mid-markets, Noel Neo.

The trend of co-living conversion has been highlighted by the launch of LHN Group Four Star’s joint venture under the Coliwoo brand and the more recent partnership between SLB Development Ltd and Weave Living to convert the Hotel Clover in Jalan Sultan into a co-living property.

According to JLL, for the Singapore mid-market to differentiate offerings and address a slowdown in new supply, various operational issues must be addressed to enhance the opportunity to attract guests and investors.

Staff shortages in Singapore’s hospitality industry will continue to present challenges for mid-market hotels. According to JLL, operators that enhance benefits and provide a clear career path will attract and retain talent with greater success. Additionally, offsetting rising inflationary-influenced supply chain costs will push smaller hotels in Singapore to seek partnerships with larger brands to influence better pricing on goods and services. Furthermore, the digitalization of the mid-market segment will also need to ramp up for the industry’s acceleration to continue, including the adherence to a property management system (PMS) and other tech-inspired experience tools.

“There is a unique opportunity for Singapore’s mid-market hotel sector to address challenges swiftly and decisively with a clear operational strategy and a forward-looking lens. Macro-economic factors will continue to influence the fortunes of the sector, but by taking a partnership approach with asset management providers, many mid-market operators can better future proof their assets and attract more guests and capital,” says Pierre Marechal,  JLL Hotels & Hospitality Group vice president, advisory and asset management, Asia Pacific.

For more details, check out JLL’s Singapore mid-market hotels outlook 2022

SINGAPORE, 19 May 2022: Far East Hospitality, a leading operator of hotels and serviced residences, will introduce Vibe Hotels and Adina to the Singapore market through a long-standing joint venture partnership with TFE Hotels (Toga Far East Hotels).

Introducing the two Australian hospitality brands is part of Far East Hospitality’s endeavour to achieve its operational target of 25,000 rooms by 2025 globally.

“As international borders reopen, Australia is a natural key target market. It was amongst Singapore’s top five inbound markets before the pandemic,” said Far East Hospitality chief executive officer Arthur Kiong. “The return of the Kangaroo route, which refers to the flight paths between Australia and the United Kingdom with stopovers in Singapore, also offers us an opportunity to encourage more stopovers and attempt to lengthen their stay with new experiences.”

Kiong added: “The two new brands that we are bringing into Singapore will provide an Australian twist to what Singapore, as a destination, has to offer”.

Despite the Covid-19 pandemic, Far East Hospitality continued to introduce new brand experiences. In 2021, the company launched The Clan Hotel Singapore, catering to guests who seek authentic experience, and Oasia Resort Sentosa for guests who prioritise health and wellness.

Bringing Australian-inspired hospitality to Singapore

Far East Hospitality will leverage a long-standing collaboration with joint venture partner TFE Hotels (Toga Far East Hotels) to introduce Vibe Hotels and Adina brands to Singapore through the rebranding of existing properties, the Elizabeth Hotel and Regency House (serviced residence), respectively.

Adina Serviced Apartment Singapore Orchard targets corporate expatriates as well as leisure travellers seeking transient accommodation. The property is slated to open in July this year with 88 units.

Vibe Hotel Singapore Orchard will offer 256 rooms catering to Australians and travellers seeking a touch of contemporary Australian hospitality. It will be the first Vibe branded property outside of Australia.

Both Far East Hospitality and TFE Hotels will also continue to collaborate in sales and marketing through cross-selling of properties on respective brand websites and cross-promotion of sales campaigns.