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Some hoteliers here worry over a possible drop in revenue per available room (RevPAR) in 2017, as odd-numbered years usually have fewer meetings, incentives, conferences and exhibitions (MICE), as well as major sporting and entertainment events, reported Singapore Business Review, citing OCBC Investment Research.
OCBC noted that this trend is often cited as a factor that negatively affects RevPAR. However, it is the state of the world economy which has a more significant impact on hotel income.
“Beyond anecdotes of hotels being able to charge higher room rates during certain events, it is tough to see an obvious trend in the data showing better operational performance during even-numbered years,” it said.
Nevertheless, a relatively smaller number of events would worsen the expected challenging situation for hotels this year, said OCBC.
Furthermore, another important factor that influences RevPAR is the growth in hotel room supply, which is forecasted to come in at approximately six percent in 2017.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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