Chart of the Day: Mid-tier hotels to suffer as massive room supply floods the market

Rates and occupancy will drop this year.

Almost 4,000 new hotel rooms are expected to become available in Singapore's already-saturated hospitality market this year. The hefty new room supply will drag average daily rates and hotel occupancy over the next few months, according to a report by DBS.

DBS said that approximately 3,899 hotel rooms will be added this year, equivalent to 6.3% of existing supply. With tourist arrivals expected to remain stuck in the doldrums, DBS estimates that revenue per average room (RevPAR) will drop by 4.4% to $201, while occupancy is forecasted to fall to 83.7%.

The major new supply will be concentrated largely in the CBD area with 816 rooms being added from the following developments: The South Beach, Oasia Downtown Hotel, Premier Inn and Clermont Hotel.

The other major areas of concern would be the Singapore River precinct with the opening of M Social, Intercontinental Singapore Robert Quay (old Gallery Hotel) and The Warehouse Hotel.

Combined with the completion of refurbishment works at Swissotel Merchant Court, a total of 705 rooms will hit the market. Beyond the new supply in the Singapore River area, the rebranding of Riverview Hotel as Four Points by Sheraton should also cause competition in this sub-market to be more keenly felt.

DBS also noted that majority of new supply this year will come from the mid-tier category, with 40% of rooms coming from this segment.
"This should place the greatest pressure on RevPar for the Mid-Tier and Economy sectors as the new hotels seek to build up their initial occupancy and brand awareness,” DBS said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia