Soft January for Singapore hotels

LONDON, 14 February 2017: Singapore hotels continue to suffer low occupancy levels caused by a strong supply growth in accommodation options, according to STR’s preliminary January  data.

Room supply grew by 3.9% in January, this year, continuing a trend that was evident in the last quarter of 2016.

In contrast demand for rooms increased by a marginal 0.6%.

inside no 8In its market summary, STR analysts noted that the market continues to struggle from significant supply growth and weak demand performance.

Based on daily data, the average hotel occupancy fell 3.2% to 79.6% across the city state.

Average daily rate (ADR) also dropped 1.0% to SGD279.38

Revenue per available room (RevPAR) declined 4.1% to SGD222.25

The absolute RevPAR level would be the lowest for a January in Singapore since 2011. The country’s 3.5% increase in supply for 2016 was the highest for an entire year since 2011.

STR will release actual January 2017 results later this month.

(Source: STR)