Beyond the Map : How Location Intelligence Elevates Real Estate Strategies in Hospitality

Last week at the Hotel Investment Conference Asia Pacific (HICAP) 2024, Shyn Yee Ho-Strangas, Managing Director of Data and Software Solutions at PropertyGuru Group, participated in a distinguished panel discussion titled "Acquisitions – Hotel Investment Returns and Market Dynamics." Alongside other esteemed industry leaders, she explored key insights on the evolving landscape of hotel investments, delving into market trends, return on investment, and the shifting dynamics shaping the future of the hospitality sector.

In developing PropertyGuru Group’s proprietary market intelligence platform, DataSense, profound insights have emerged into the complex decision-making processes faced by asset owners, developers, and financial institutions. One of the most significant challenges in today’s rapidly evolving market is navigating the trade-offs between different asset classes. Should a commercial property be repurposed for co-living? What is the best strategy for implementing Asset Enhancement Initiatives (AEI)? The answers to these questions are critical but not always easily accessible due to the inherent opacity of real estate data across Southeast Asia.

The Opaque Nature of Real Estate Data in Southeast Asia

Southeast Asia’s real estate data landscape is a unique puzzle, characterised by layers of complexity and inconsistent availability. In some instances, data exists, but its reliability is questionable. In other cases, the data is tightly held by its creators, serving only their needs. Often, the data simply does not exist. This lack of transparency creates a barrier to informed decision-making, making the development of platforms like DataSense by PropertyGuru essential and deeply intriguing.

DataSense is designed to fill these gaps, providing stakeholders with the tools they need to make informed decisions in a data-scarce environment. Whether a developer looking to repurpose an asset or a financial institution assessing the viability of an investment, access to clean, reliable data is critical.

‍Leveraging Proxy Data to Support Decision Making

At the heart of decision-making in real estate is the ability to balance risk and opportunity. In an environment where high-quality data is scarce or unavailable, decision-makers must be innovative. Proxy data can be an effective tool to augment strategic decisions.

For example, hotel asset owners and operators can leverage location-based mobility data to evaluate footfall and catchment areas for domestic demand on food and beverage and banqueting services. By analysing this data in relation to competitive sets, decision-makers can identify opportunities for asset enhancement or benchmark themselves against competitors beyond traditional metrics like room occupancy and average rates. The use of proxy data not only provides a competitive edge but also opens new avenues for strategic planning in an uncertain environment.

The Creative Power of Data

Data, when used creatively, can tell compelling stories. It can uncover hidden opportunities and provide unique insights that might otherwise be missed. Combining traditional real estate data with innovative sources like mobility data offers a more holistic view of market dynamics. For asset owners, developers, and financial institutions, this kind of intelligence is invaluable, helping to navigate the complex trade-offs between risk and reward.

At PropertyGuru Group, there is a commitment to pushing the boundaries of what is possible in real estate market intelligence. Platforms like DataSense not only provide access to high-quality data but also empower users to think creatively about how to apply it. In an opaque and rapidly changing market like Southeast Asia, the ability to unlock new insights from unconventional data sources could be the key to staying ahead of the competition.

By building and continually refining this market intelligence platform, clients are enabled to make smarter, more informed decisions that will shape the future of real estate across Southeast Asia. The power of data is undeniable, but its true potential is realised when used creatively to tell stories that drive action.

And as innovation continues, these stories are just beginning to unfold.

By building and continually refining this market intelligence platform, clients are enabled to make smarter, more informed decisions that will shape the future of real estate across Southeast Asia. The power of data is undeniable, but its true potential is realised when used creatively to tell stories that drive action. And as innovation continues, these stories are just beginning to unfold.

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This article is part of a three-part series. Stay tuned for the upcoming instalments.

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