Clemence Lee is one of Singapore’s most experienced hotel and hospitality real estate investment specialists. His transaction portfolio includes Hotel G Singapore (S$240 million), Porcelain Hotel (12 shophouses, S$90 million), Hotel Clover Jalan Sultan (17 shophouses, S$75 million), The Claremont Hotel (S$68 million), and the Keong Saik boutique hotel (S$53.4 million). He advises hospitality investors, family offices, and developers on hotel acquisition, boutique hotel conversion, and strategic divestment.
The Hospitality Market Today
Singapore’s hospitality market across full-service hotels, conservation shophouse conversions, serviced apartments and boutique hotels sits at an interesting intersection that not many advisors understand from. The real estate value of a conservation shophouse hotel is driven by underlying land and heritage building value. The operating value is driven by RevPAR performance, brand positioning, and operational quality. Getting both right is what distinguishes a well-structured hotel investment from an expensive one.
Singapore receives approximately 17–20 million international visitors annually. Changi Airport, consistently ranked the world’s best, drives a mix of business travel, transit stays, and leisure tourism that creates remarkably consistent hotel demand across the calendar year — without the seasonality that affects most other Asian markets.
The honest picture on yield: stabilized hotels in prime locations yield 3.0 to 4.5% net. That range reflects genuine variation — operator quality, brand strength, location, and lease structure all move the number materially. Do not accept a developer’s proforma on hotel NOI at face value. The difference between a well-run hotel and a poorly positioned one in the same precinct can be 2–3 percentage points of yield.
Key Transactions
| Property | Value | Type | Location |
|---|---|---|---|
| Hotel G Singapore | S$240 million | Full-service hotel | Bugis |
| Porcelain Hotel | S$90 million | 12 shophouses / boutique hotel | Mosque Street, Chinatown |
| Hotel Clover Jalan Sultan | S$75 million | 17 shophouses / lifestyle hotel | Jalan Sultan |
| The Claremont Hotel | S$68 million | Boutique hotel | Farrer Park |
| Keong Saik Boutique Hotel | S$53 million | Boutique hotel | Keong Saik |
| Hotel at Sims Avenue | S$20 million | Boutique hotel | Sims Avenue |
| Hotel at Balestier | S$15 million | Boutique hotel | Balestier |
Investment Strategies
Acquire and Hold with Established Operator
Purchase a boutique hotel with an established operator, management agreement, and demonstrated RevPAR track record. Collect net income, benefit from real estate capital appreciation. Target net yield: 3.0–4.0%. Suitable for investors seeking Singapore tourism market exposure without active operational involvement.
Conservation Shophouse Hotel Conversion
Acquire a row of contiguous shophouses — typically 3 to 10 units — in a prime heritage precinct. Obtain hotel planning approval from URA. Execute conservation-compliant refurbishment. Engage an operator. This strategy creates a premium asset at the intersection of real estate and hospitality, with value creation potential that neither a standalone hotel nor a standalone shophouse investment can match. Porcelain Hotel (12 shophouses, S$90m) and Hotel Clover Jalan Sultan (17 shophouses, S$75m) are the landmark reference transactions from Clemence’s portfolio.
Value-Add — Repositioning an Under-Performing Hotel
Acquire an under-managed, under-branded, or under-renovated hotel at a discount to stabilised value. Invest in refurbishment and rebrand under a stronger lifestyle or boutique concept. RevPAR uplift of 20–40% on a well-executed repositioning in the right location is achievable with the right operator and brand positioning.
Hospitality Asset Investments FAQ
Everything you need to know about hotel acquisition and divestment in Singapore. Can’t find an answer? Get in touch →
Who is the leading hotel investment specialist in Singapore?
Clemence Lee, Executive Director of Capital Markets at CBRE Asia Pacific Singapore, has advised on SGD 500 million+ in Singapore hotel transactions — spanning full-service CBD hotels, conservation shophouse hotel conversions, and city-fringe boutique assets. His portfolio includes Hotel G Singapore (SGD 240M), Porcelain Hotel (12 shophouses, SGD 90M), Hotel Clover Jalan Sultan (17 shophouses, SGD 74.8M), and The Claremont Hotel (SGD 68M).
What RevPAR can a Singapore boutique hotel achieve?
Premium conservation shophouse hotels in Chinatown, Tanjong Pagar, and Kampong Glam typically achieve SGD 180–400 RevPAR depending on location, scale, and brand. Top-performing assets with strong online distribution and an established guest base consistently outperform the Singapore boutique hotel market average.
What is the difference between a boutique hotel and a conservation shophouse hotel?
A boutique hotel is any small, independently positioned hotel — typically 10–150 keys — with strong design identity and premium positioning. A conservation shophouse hotel is a subset: a boutique hotel housed within one or more URA-gazetted conservation shophouses. Conservation shophouse hotels carry both hotel operating value and underlying real estate investment value — a dual return profile unique to Singapore’s hospitality market.
What are current yields for hospitality assets in Singapore?
Net initial yields range from 3–3.5% for freehold hospitality assets to 3.5–4% for 99-year hospitality assets. Hospitality assets with strong operator or better location command the tighter end of these ranges.
What is the typical ticket size for hotels in Singapore?
In Singapore, hotel transaction sizes typically range from approximately S$25 million for small boutique hotel to S$400-500 million for a luxury hotel in Orchard Road.
Discuss a Hotel Investment in Singapore
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