Empty rooms lead the way in Mingtiandi’s roundup of Asia real estate headlines today with the news that Singapore’s average hotel occupancy fell to 51 percent in February, triggering a 40 percent plunge in revenues.
In other news around the region, a US co-working giant says COVID-19 is likely to affect its attempt to make a profit, while mainland developers accelerate sales as they brace for a fall in revenue due amid the pandemic. Elsewhere, a Hong Kong hotel operator sounds the alarm over falling occupancy.
Singapore hotels were only half-filled in February, resulting in a 40 percent plunge in room revenues, as coronavirus fears threaten to bring the global travel industry to a grinding halt, according to data from the Singapore Tourism Board (STB).
The standard average occupancy rate in February 2020 was 51 per cent, a steep fall from the 83.1 percent in January, which saw little impact yet from the COVID-19 outbreak that was mostly confined to China. In contrast, the rate was 88.5 percent in February 2019. Read more>>
WeWork says it doesn’t expect to hit its 2020 financial targets as it grapples with the coronavirus outbreak.
The impact of the virus “will likely have a negative impact” on the company, including on forward-looking information that it previously disclosed, chief executive officer Sandeep Mathrani and executive chairman Marcelo Claure wrote in a letter to bondholders on Thursday. Read more>>
Some of China’s biggest developers are set to accelerate sales and shorten their construction cycles to shore up cash flow in response to the economic fallout from the Covid-19 outbreak.
Four mainland Chinese builders reported higher profit growth for 2019 on Thursday, but said they are braced for hard times ahead as the deadly epidemic squashes market demand. Many property developers have seen sales plummet in the first two months of 2020. Read more>>
Regal Hotels International Holdings, which owns the airport hotel in Hong Kong, said that the double whammy of coronavirus outbreak and social unrest could prove disastrous for the company, as one in five rooms at its properties remains unoccupied.
“Unless the further spread of the coronavirus can be promptly contained, business outlook for this year would not be optimistic,” the company said in its annual result filing to the Hong Kong stock exchange late on Thursday. Read more>>
UK property group Ability Group has bought Hampton by Hilton hotel at Bristol Airport from CIMC Capital.
Announcing the deal, CBRE said it has advised CIMC, subsidiary of mainland shipping giant Cosco, on the sale of the 201-bedroom asset for over £24 million ($29 million). Read more>>
Sam’s Club, a members only warehouse retailer owned by US retail giant Walmart, is set to open a flagship in Shanghai.
The 70,000 square metre (753,473 square foot) Waigaoqiao Xin Development Park-based store will be Sam’s Club’s third location in the city and will bolster competition against rival Costco. Read more>>