2018 may deliver better year for hospitality sector
2018 could shape up to be a more buoyant year for the local hospitality industry, thanks in part to a slowdown in supply.
Over 2011-2016, hotel room inventory expanded at a compound annual growth rate of 5.1 per cent, with a further 4 per cent slated to come onstream this year.
Heightened competition has been putting pressure on revenue per available room (RevPAR), especially as new entrants to the markets roll out promotional rates to try and fill their rooms. According to preliminary estimates from the Singapore Tourism Board, RevPAR for Singapore hotels in the first seven months of this year was flattish at S$199.60 even as visitor arrivals grew.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
iPhone maker Hon Hai’s April sales rise 19% in positive signal
Worsening weather is igniting a US$25 billion market
TikTok tells advertisers: ‘We are not backing down’
EV automakers get reprieve in US tax credit rules
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance