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The overall number of hotel rooms in Singapore soared by 67.9 percent over the past nine years, reported the Singapore Business Review, citing a report from Savills Research.
From 2009 to 2017, a total of 26,734 new hotel rooms were added here. This translates to an average of 2,970 rooms per year and a compound annual growth rate (CAGR) of 5.9 percent.
“Considering the amount of supply that has been taken up, recent hotel market performance has held up well,” said the property consultancy.
In particular, the supply growth spiked to over 8 percent from 2007 to 2010, then fell sharply to under 5 percent in 2012. It then stabilized to 5 percent between 2013 and 2016, but subsequently declined to 4 percent last year.
Moreover, hotel occupancy level dipped by 1.7 percentage points in the past five years, while revenue per available room (RevPAR) dropped by 11.2 percent.
Looking ahead, hotel room supply in the city-state is expected to grow at a moderate pace of about two percent or less per year between 2018 and 2021. Compared to total room count of about 65,000 last year, overall hotel room supply is projected to reach nearly 70,000 at the end of the period, added Savills Research.
This article was edited by Keshia Faculin.
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