Singapore hotels rates decline

LONDON Additional room supply continues to put Singapore’s hotels under pressure according to the latest STR’s preliminary for February

The data showed Singapore enjoyed a slight occupancy growth, but at the cost of significantly lower rates.

Figures based on daily data in February showed supply increased 4% and demand for hotel rooms 4.9%.

Occupancy improved slightly at 0.9% to an average  85.7%.

However the average daily rate (ADR) dropped 8.1% to SGD274.32.

Revenue per available room (RevPAR) was also down 7.2% to SGD235.07.

As with previous months, STR analysts believe that the more than 2,000 rooms added to the market since the beginning of 2016 once again placed pressure on hotelier pricing power.

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