Odd-numbered years tend to have fewer MICE and large sporting events.
While some hotel owners worry that the expected fewer events happening this year might affect their performances in terms of RevPAR, analysts think that the global economic sentiment is a much bigger concern.
According to OCBC Investment Research, as odd-numbered years tend to have fewer meetings, incentives, conferences and exhibitions (MICE) and large-scale sporting/entertainment events, this has often been cited as a reason for RevPAR declines.
"Yet, beyond anecdotes of hotels being able to charge higher room rates during certain events, it is tough to see an obvious trend in the data showing better operational performance during even-numbered years," OCBC explained.
The firm noted that while a relative dearth of events will not help the tough operating situation expected this year ahead, other factors driving demand – especially global economic sentiment – are much more significant.
"The growth in hotel supply room, which is expected to be ~6% this year, is also a key consideration going forward," it added.
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