Chart of the Day: Economy hotels hardest hit by tourism slowdown
Room rates are down 13%.
Economy and mid-tier hotels are hardest hit by Singapore’s tourism slowdown, this chart by Jefferies revealed.
The report showed that RevPar for mid-tier/economy hotels have declined 9-13% compared to a 6-7% decline for luxury/upscale hotels.
To make matters worse, the Singapore Tourism Board (STB) expects supply over the next 3 years to grow at 4.9% compound annual growth rate (CAGR).