Will growing tourism numbers turn the tide around for Singapore's hotels?

Visitor arrivals grew by 11.9% to 11.3m.

More tourists usually mean good news for hospitality real estate investment trusts (REITs), but the resuscitating tourist numbers may not be enough to turn around the bleak outlook for these REITs.

According to OCBC, the outlook ahead for hotels remains largely cautious, given the uncertain macroeconomic environment and oversupply.

OCBC added that the key driver for the figures were driven by the Singapore Airshow, which only happens on a biennial basis.

Meanwhile, there were some encouraging points on the hotels room front, as average occupancy rate in the industry rose 1.9 ppt QoQ and 1.0 ppt YoY to 85.8%, while RevPAR increased 8.5% QoQ and 5.1% YoY to S$219.