2-star, 3-star hotels outshine more posh peers in Singapore's hospitality sector

4-star hotels are disappointing.

According to OCBC, Jul and Aug may have been showing RevPAR growth on a YoY basis for the industry as whole, in contrast to YoY contractions for 1H13.

Surprisingly, room demand was good for a number of hotels over the long 4-day long weekend with Hari Raya Puasa and National Day.

Here's more from OCBC:

Some hotels are also seeing good pickup for the F1 period in Sep. However, it should be noted that the demand has generally been coming in last minute, making forecasting difficult.

Industry sources indicate that on a same-store basis, 2-star hotels and 3-star hotels are performing the best, followed by 5-star hotels.

4-star/4.5-star hotels are doing poorly, being squeezed by competition from 3-star and 5-star hotels. This relative performance was already observed in 1H13.

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