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Singapore emerged as the region’s top performer, with revenue per available room (RevPAR) at US$198.41 (S$273.53).
Despite a healthy visitor growth in the first quarter of 2019, Asia Pacific saw occupancy rate drop 0.4 percentage points year-on-year to 70.3 percent for the 12 months ending-July 2019, revealed a CBRE report.
Markets that posted above 80 percent occupancy included Hong Kong, Sydney, Tokyo, Melbourne, Osaka and Singapore.
CBRE noted that these markets often achieve “full capacity and are generally consistent performers with minimal fluctuations in occupancy”.
Singapore emerged as the region’s top performer, with revenue per available room (RevPAR) at US$198.41 (S$273.53).
“The country recorded strong performance during the period, particularly in July, when occupancy rose above 90 percent for the first time on record amid steady growth in visitor arrivals and the shrinking supply pipeline,” said CBRE.
The city-state’s performance is expected to remain robust, on the back of local tourism bodies’ ongoing efforts to improve its offering.
Meanwhile, hotel investment sales in Singapore also remained robust following a strong 2018.
Excluding partner buy-out transactions, the city-state saw four properties change hands during the first half of 2019, which include Ascott Raffles Place, Bay Hotel, Ibis Novena and Claremont Hotel.
With this, transaction volume for H1 2019 stood at S$828.3 million – twice the figure posted in H1 2018, which saw similar number of deals but were mostly within the smaller and economy segments.
Despite slower economic growths and strengthening global headwinds, CBRE expects interest in Singapore hotel assets to remain strong among both local and foreign investors as the city-state retains its status “as a leading gateway city with strong market fundamentals”.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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