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Singapore remains as one of the top performing hospitality markets in the Asia-Pacific region, according to Cushman & Wakefield’s HotelViews 2015.
The city-state is expected to have the highest average daily rate (ADR) of US$207 (S$276) for the whole of 2014, beating Hong Kong with US$193 (S$258) and Sydney at US$185 (S$247), once the complete year-end statistics have been tallied.
However, the occupancy rate in Singapore is projected to decline to 84.3 percent for the entire year, behind Sydney (85.8 percent), Tokyo (87.4 percent) and Hong Kong (90 percent).
“In 2014, Singapore saw a very marginal improvement of 1.0 percent in market-wide ADR from S$258 to S$260, but occupancy fell and is expected to close the year at about 84.3 percent, down from 86 percent in the previous year due to a growing supply of rooms and the decline in tourist arrivals,” said Akshay Kulkarni, the consultancy’s Regional Director for Hospitality (Southeast Asia).
In spite of the fewer tourist arrivals, a marginal drop in occupancy and a 1 percent dip in revenue per available room (RevPAR) to S$219, the outlook for Singapore’s hospitality sector remains positive with demand expected to recover in the short-term and keep pace with increasingly measured growth in supply in the medium term, Cushman & Wakefield said.
“This bodes well for the coming year, with inbound travel likely to go up – and with growing demand, the rates will only see northward movement” noted Kulkarni.
“This shows the overall resilience of the Singapore market and the reason why it remains one of the best performing markets in the region, and one of the best for hotel investment. The only potential hindrance In terms of investment is the increasing capital value,” he added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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