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Hoteliers in Singapore are now focusing on offering more midscale rooms instead of luxurious ones due to a change in visitor profile, revealed Skift.
According to the provider of global travel industry intelligence, the hotel industry here has been actively attracting middle-income guests over the past two years, as visitors who usually stay in high-end rooms dwindle.
“It has to be about going for the middle-class,” said Beh Swan Gin, Chairman of the Economic Development Board, the government agency spearheading economic strategies.
Previously, affluent executives from the banking and oil industries accounted for a large portion of guests. But after the 2008 Global Financial Crisis and a sharp decline in crude prices, they were replaced by business travellers from the pharmaceutical and technology sectors.
“The technology industry in Singapore is far more supportive of mid-scale and upscale than luxury, which finance or oil and gas executives typically prefer,” said Frank Sorgiovanni, Research Head for Asia Pacific at JLL’s hospitality arm.
In addition, millennials visiting for business in Singapore’s flourishing Fintech sector place more importance on excellent Wi-Fi connection and the entertainment options available in a hotel’s common areas rather than fancy furnishings.
Due to this trend, the number of midscale rooms here surged by 32 percent in the last two years, surpassing the 8.25 percent growth in the upscale segment and 1.8 percent in the luxury category, based on data from CBRE. On average, these hotel rooms cost $170, $260 and $446 respectively per night.
Furthermore, the shift towards this market segment continues, said DBS, forecasting that mid-tier hotels will make up the largest percentage of new supply at 34 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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