Singapore hotels continue to suffer
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Singapore’s hotel sector continued to see falling rates and occupancy in November 2016, continuing a string of poor monthly results.
Demand for rooms in the Lion City increased 2.2% last month, but this failed to keep up with a 4.0% expansion of supply. As a result, Singapore’s average occupancy dipped 1.8% to 81.1%, and the city’s average daily rate (ADR) declined 4.2% to SG$273.49 (approx. US$191). Revenue per available room (revPAR) fell 5.9% to SG$221.74.
STR analysts noted that the market has struggled since concerns over the Zika virus surfaced in August. Consistent supply growth (+3.5% in the year to October 2016) and fewer major events have also contributed to the downturn.
November 2016’s revPAR marks the lowest for a November in Singapore since 2009.
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