More so for hotels relying on corporate demand.
According to OCBC, in 2016, AOR, ARR, and RevPAR grew by -0.9 ppt, -3.6%, and -4.6% YoY, respectively. This compares to the 5.3% decline in RevPAR for the whole of 2015.
For FY16, key data points to note were the 4.3% increase in hotel room supply, 2.2% increase in visitor days (on the back of a 7.7% increase in tourist arrivals), and 2% increase in Singapore GDP.
Here’s more from OCBC:
Looking forward to FY17, with a forecasted 5.9% growth in hotel rooms and tepid economic growth outlook, RevPARs are expected to continue their decline, and especially so for hotels that rely on corporate demand.
In addition, with FY17 being an odd-numbered year, we expect the MICE events calendar to be less packed for corporates.
Barring an event-related collapse in tourist arrivals and/or a recession, RevPARs are expected to improve in FY18 with better supply-demand dynamics.
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