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.