Hotel RevPAR to dip by 3% this year

It has been gradually declining in the last five years.

Revenue per available room (RevPAR) of Singapore hotels is back to 2008 levels, according to the latest report by RHB.

RHB analyst Vijay Natarajan said hotel RevPAR has been on a gradual declining trend after peaking in 2012. It already registered a 12% decrease from the said peak.

"While occupancy has remained relatively steady through the years, room rates have taken a hit. With supply threats diminishing and demand expected to pick-up, we expect hoteliers to regain some of the pricing power," the analyst said.

Overall RevPAR is set to register a 2% to 3% decline this year, before bouncing back to 3% to 5% growth in 2018 to 2019.

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