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Chart of the Day: Luxury hotel room rates dip as corporate travellers vanish
Performance won't improve for the rest of the year.
High-end hotels have been forced to reduce room rates in order to compete for a smaller pool of corporate travellers.
According to JLL, Singapore's luxury hotels have seen a 4.6% year-on-year decline in their average revenue per available room (RevPAR) to $316 per room in the second quarter. Average daily rate (ADR) has also declined to $406, JLL said.
As of May 2015, occupancy was recorded at 77.8%, a 0.2 percentage point y-o-y decline from 2014.
"We anticipate limited improvement in hotel trading performance over the balance of 2015 due to the decline in visitor arrivals and cautious spending by corporates,” JLL said.
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