It was driven by growth in market occupancy and ADR.
Singapore’s hotel revenue per available room (RevPAR) edged up 2.4% YoY to $188.57 in 2018 as the supply of new hotels slow down even against surging visitor arrivals, according to CBRE’s hotel marketview.
The economy segment saw the largest YoY RevPAR growth of 4.1%, followed by the luxury segment with 4%. The other two segments, upscale and mid-tier, both saw a YoY increase of 2.1% and 1.8%, respectively.
Occupancy levels across all hotel segments hit 86.1% in 2018, which represents a 120-basis points increase compared to 2017. All segments reported growth in occupancy levels, led by the luxury segment which saw an increase of 240 basis points.
Likewise, market average daily rates (ADR) advanced 0.9% YoY to $219.14 which was attributed to the substantially lower supply in 2018 that provided room for hoteliers to increase their rates. All segments witnessed a growth in ADR levels, with the strongest growth recorded by the economy segment at 2.4% YoY.
The number of new hotel rooms that entered the pipeline slowed down significantly compared to the period between 2010 and 2017 which saw an average addition of 3,000 rooms per annum, CBRE revealed. Notable hotels that entered the scene in 2018 included the 157-key Kempinski Capitol Singapore, 49-key Six Senses Duxton, 138-key Six Senses Maxwell, as well as the reopening of 426 refurbished rooms in Swissotel The Stamford.
In 2019, an estimated 2,000 rooms are expected to enter including those from the YOTELAIR Changi Airport, EDITION, and three of Far East’s hotels in Sentosa comprising of The Outpost Hotel, The Barracks Hotel and Village Hotel Sentosa.
“After 2019, new supply is expected to taper off and this is expected to help to ease any further supply pressure as the hotel market is able to consolidate further and its market occupancy will be able to continue to strengthen in light of healthy tourist arrival numbers,” CBRE said.
Photo from Swissotel.
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