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The prospect of Singapore’s hotel industry is becoming more positive, as indicated by the latest financial statements of hospitality REITs, reported Nikkei Asian Review.
For instance, CDL Hospitality Trusts’ (CDLHT) revenue per available room (RevPAR) edged up by 1.1 percent to $155 in Q4 2017 on an annual basis.
This represented the first annual gain in its RevPAR for three years as the number of tourists increased, while its portfolio occupancy remained at 83.5 percent even though seven new hotels opened here during the quarter.
At the same time, the room rate of OUE Hospitality Trust’s Mandarin Orchard hotel increased by about 2.27 percent year-on-year to $225 per night, while that for its Crown Plaza Changi Airport hotel surged by 32 percent to $176 a night.
Meanwhile, Ascendas Hospitality Trust reported an additional $200,000 in Park Hotel Clarke Quay’s gross revenue and net property income compared to the same period in 2016.
According to DBS Equity Research, RevPAR of hotels in Singapore is expected to rise by 3.5 percent per annum in the next three years due to a drop in room supply.
In fact, CDLHT thinks only a total of 769 hotel rooms will be added this year, in light of the upcoming revamp at Swissotel The Stamford.
Singapore’s largest hotel REIT forecasts that the supply of new rooms here will only rise marginally by 1.4 percent per annum between 2018 and 2020 compared to the 5.3 percent annual growth registered in 2014 to 2017.
Meanwhile, Euromonitor International revealed that Singapore was the world’s fourth most visited city last year. It attracted a total of 16.6 million visitors, surpassing Paris and New York, but trailed behind Hong Kong, Bangkok and London.
Based on statistics from the Singapore Tourism Board, the number of inbound visitors rose 6.4 percent year-on-year to 15.9 million between January and November 2017.
Tourist arrivals are expected to increase this year thanks to major biennial events like the Singapore Airshow, which will begin this week, and the April opening of Food and Hotel Asia 2018. The city-state is also expected to host more foreign dignitaries as it took over the rotating chair of the ASEAN organisation this year.
However, the hotel industry’s bright outlook could be impacted if the authorities relax its rules on home-sharing websites like Airbnb.
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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