Hotel supply to grow 2% in 2019
Expansion of Marina Bay Sands and Resorts World Sentosa to boost the sector.
The total existing hotel supply is anticipated to grow by 2% or an additional 1,400 rooms by the end of 2019, according to a report by JLL. There are currently over 68,000 hotel rooms in the city.
The tourism sector in the city is expected to have a boost in the medium to long term, given the expansion of Marina Bay Sands and Resorts World Sentosa, the completion of an eco-tourism hub in Mandai by 2023, and the development of the Greater Southern Waterfront announced August that will include private and public accommodations, offices, entertainment attractions and resort.
The compound annual growth rate (CGR) for hotel supply is expected to slow to 0.7% from end-2019 to end-2022, from 4.2% during end-2015 to end-2018.
The market-wide revenue per available room (RevPAR) stayed at $186 in year-to-date (YTD) July 2019, according to the Singapore Tourism Board (STB). Occupancy reached 93.8%, the highest ever recorded by STB.
RevPAR for upscale and midscale & economy hotels rose 1.2% during the same period, but luxury hotels posted a 1.5% fall.
Transaction volume for hotel investments in Singapore totalled $1.7b for YTD September 2019.