Singapore’s billionaire-controlled real estate corporations are headed for a breakout year, backed by a post-pandemic rebound in their hotels amid demand from business and recreational travelers.
“The resilience of the Asia-Pacific hotel industry and the reopening of borders have accelerated further in 2022, with a pandemic-driven commercial and recreational setback to ensure that demand will soon be at the same point as before Covid points,” Nihat Ercan, Director of Investment Sales for Asia Pacific at JLL Hotels
Reflecting growing demand from travelers, Singaporean billionaire Kwek Leng Beng’s City Developments said last week it had returned to the black figure, with a record net profit of S$1100 million ($801 million) in the six months ended June 30. The effects were reinforced through the February sale of Millennium Hilton Seoul, which is among the largest hotel offerings in the region this year. the end of the year, according to JLL.
City Developments is one of Asia’s hotel operators. Through its London subsidiary Millennium
“With the post-pandemic fueling continued recovery, we expect hospitality to be a star player for the rest of the year,” Kwek, president of City Developments, said in a statement. “As Covid-19 considerations fade, our hotel portfolio will be a valuable expansion driver that will contribute particularly to the group’s recurring revenue. “
Billionaire banker and real estate mogul Wee Cho Yaw’s UOL group, owner of Pan Pacific Hotels Group, is also reaping benefits from a strong boost from its hotel and residential business. UOL said Friday that its net profit quadrupled to S$371 million in the six months ended June 30.
Hotel Properties – controlled through Ong Beng Seng and his wife Christina – closed in the black in the first part of the year, with a net profit of S$1. 92 million following the divestment of the Hilton London Olympia. Hoping that the recovery of the hotel industry will be sustained, Hotel Properties is to open new hotels and resorts around the world next year.
In 2023, Hotel Properties will open a new luxury hotel in the Maldives, a key expansion market for the company. Currently, Kahuna Maldives, which includes 81 villas on Lhaviyani Atoll, about 150 kilometers north of the country’s capital, Male, will currently be renovated. controlled through Six Senses Hotels
Hotel Properties opened Voco Orchard Singapore (formerly Hilton Singapore) in January this year as the city-state prepares for the return of the Formula 1 Grand Prix, a franchise owned by Ong, after a two-year hiatus. Visitor arrivals to Lion City multiplied by 12 to 1. 5 million in the first part of the year and the Singapore Tourism Board said last month it expects that number to rise to 6 million by the end of the year.