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Singapore’s hospitality industry posted lacklustre results last month but revenue per available room (RevPAR) is expected to increase this year, according to a report from STR Global.
Based on the research firm’s preliminary data for February 2015, the supply of hotel rooms in the city-state rose by two percent. However, demand saw a larger drop of 3.2 percent.
Occupancy slid by 5.1 percent to 83.9 percent, while the average daily rate (ADR) fell 9.5 percent to S$289.19. Consequently, RevPAR declined by 14.1 percent to S$242.74.
“Singapore reported declines in both occupancy and ADR, off the back of the biennial Singapore Air Show, where hotels traditionally see the impact on rates”, said STR Global Managing Director Elizabeth Winkle.
Despite the gloomy performance last month, RevPAR is forecasted to edge up by 1.3 percent this year.
“The outlook remains positive for 2015, with supply expected to grow slightly faster than demand, but the increases in rate are most likely to overcome flat declines in occupancy,” added Winkle.
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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