LONDON, 14 March 2017: Additional room supply continues to put Singapore’s hotels under pressure according to the latest STR’s preliminary for February
The data showed Singapore enjoyed a slight occupancy growth, but at the cost of significantly lower rates.
Figures based on daily data in February showed supply increased 4% and demand for hotel rooms 4.9%.
However the average daily rate (ADR) dropped 8.1% to SGD274.32.
Revenue per available room (RevPAR) was also down 7.2% to SGD235.07.
As with previous months, STR analysts believe that the more than 2,000 rooms added to the market since the beginning of 2016 once again placed pressure on hotelier pricing power.
With many of the rooms added to the upper midscale class, the market comprises more rooms available at lower prices. Additionally, a lack of citywide events equalled less opportunity to push rate.
STR, a data and analytics specialist, will release actual February 2017 results later this month.