This was due to the 1.2% YoY increase to $186 in average daily room rate.
DBS Group Research reported that CDL Hospitality Trusts (CDREIT)'s revenue per available room (RevPAR) increased 1.1% YoY in the last quarter of 2017.
The increase in RevPAR was caused by the rising of the average daily room rate (ADR) of 1.2% YoY to $186, which offset a decline of 0.1% YoY in occupancy in 4Q2017.
On a full year basis, RevPAR for the Singapore hotels was $159, which was higher than DBS Research’s estimate of $155.
However, net property income for Singapore hotels decreased 1.1% YoY, which was possibly caused by declines in F&B revenue, DBS Research said.
Further, CDREIT’s RevPAR for its Singapore hotels declined by 5.5% YoY for the first 24 days of 2018, but DBS Research reported that forward bookings should offset this decline for January.
“This indicates to us there is significant pricing discipline by the Singapore hotels, which bodes well for a recovery in RevPAR once the new hotels opened in 2017 stabilise. Management guided there is potential for RevPAR to grow by 2-5% in 2018, the most bullish commentary in many years,” DBS Research said.
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